What Is Cost Per Action Marketing?

In this article I will explain to you what Cost Per Action Marketing is, how you earn commissions and why you may want to look at this form of Affiliate Marketing as a way to make money online.   

So, What Is Cost Per Action Marketing? Cost Per Action Marketing, also known as “CPA Marketing” is a type of Affiliate Marketing that requires visitors to websites to complete certain actions, such as entering some contact information, (an email address for example) sign up for free trials or request a free product sample. Sometimes it involves asking the consumer to try a new product or service by making a small purchase. (Usually just small a shipping charge)

What this to means to you, as a promoter is you get paid for “actions” taken by the traffic you send to advertisers. For example, a company has a new product they are introducing. They agree to pay the promoters $3.00 for each visitor that submits their email address.

Your job is to send traffic to their site and then collect $3.00 for each visitor that enters their email address. Other promotions may need more information than just an email address or require an upfront payment, so they will pay more for an opt in. (More Information, More Money)

As a CPA Marketer your job is to just send traffic to the companies website. You basically buy traffic for their offer and send it their way and get paid for visitors that opt in. So in what you are in practice is a Traffic Broker. Sounds simple, doesn’t it? It can be, but it generally isn’t. Like anything else there are some tricks to learn.

If You are familiar with PPC or Cost Per Click, CPA is very similar as you pay for advertising your promotions, the difference is that with CPA you will normally pay for impressions “CM” which is 1000 views for a set rate per 1000 views instead of paying for each click. But just for example you may only pay $20 for 1000 views….

So if you have a good offer (Like something Free for just entering a email address or zip code) and you know everyone Loves Free Stuff. You can do really well with CPA Marketing.

Because CPA Marketing is so profitable, CPA marketing is very competitive for the beginner, it can be a long tough road trying to compete with affiliates making thousands of dollars a day, or even affiliates that make hundreds a day with CPA Marketing.

When your just getting started, your competition can be very hard. Many beginners simply give up when they figure out that CPA marketing isn’t going to make them rich overnight.

But before I scare you off, CPA Marketing can be one of the easiest methods for someone new to Internet Marketing to begin seeing profits as fast as possible. Once you get the hang of Cost Per Action Marketing the sky can truly be the limit. This type of Affiliate Marketing has been a secret weapon of the Make Money Online Superstars.(Because it is highly profitable)It was never really a “secret” but while most people in Internet Marketing have been promoting ClickBank products, the Guru’s have been playing on a completely different level.

You just need the right information to avoid the pitfalls and straighten out that nasty learning curve. For example, which offers to promote and where and how to promote them. It all comes down to tips and tricks.

OK, so now you should have the basic ideal of what CPA Marketing is, a little of what it involves and maybe you may want to look at it a little bit closer. For more information and videos about CPA Marketing stop in and have a look around my website and thanks for reading my article. Watch The Video.

Jay Brewrr is an Internet Marketer experienced in Affiliate Marketing, PPC and CPA.

These days, more and more people are looking for ways to earn extra money. I suppose I can assume that you are among these people since you are reading this article. Well, I’ll make it worth your time and let you in on something that just might give you that extra source of income that you need. When it comes to making money online, there are plenty of choices. However, there is one that’ slowly climbing up the ladder and proving itself to be one of the easiest and fastest ways to make a profit online. What am I talking about? Well, I’m talking about the various affiliate marketing programs that are part of the cost per action network which you’ll be able to find online. Affiliate marketing, as I’m sure you are already aware of is one of the most popular ways of generating an income online but not many people know about cost per action programs. Cost per action is basically a vehicle for advertising by which a business can create simple offers which only require very little from the user or the person reading it. This could be anything from something as simple as submitting their email addresses in exchange for a discount or providing answers to a survey in exchange for a free sample and so on. How does this relate to affiliate marketing? Well, affiliates would make a commission for every lead or sign up that they get from a user.

Still don’t get it? Here’s a scenario to help you understand better. Imagine that you are an advertiser and you want to generate quick and efficient leads for your business. You can achieve this by hiring a CPA or cost per action network that would then do all the work for you. This network would then pay various affiliates to generate the leads that you want. Your business receives the leads and you basically pay the network to do that. Of course, you only pay whenever someone submits their email, fills out a simple form or basically does whatever it is that you require. What makes this a great way to make money online is the fact that you need not convince a person to purchase anything which is significantly harder than getting them to submit their email or fill out a form. This is exactly like your typical affiliate marketing program sans the need for people to actually buy something before you make a commission.

As for the pay out, this can range from $1-$25 depending on the advertiser’s requirements. There are plenty of CPA networks out there which you can join. Their offers can be anything from free ring tones, credit cards, health related products, government grants and so on. These companies could either pay by visitor or for every unique lead that you generate for them. Of course, for you to make any money from it, the person you have led to their main site must provide all the necessary information otherwise your efforts would prove to be pointless. So if you’re looking to try something new and perhaps earn some money along the way, do give this a go.

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Cost Per Action Marketing

Cost per action marketing is being touted as being much more beneficial than the tried and true cost per click advertising. Although cost per action or CPA as it is referred to is not a new method of marketing it has become quite popular. So what does it mean, how does it work and should I use it.

For an illustration consider a company wishing to expand their product sales. Traditionally they would develop an advertising campaign to have customers contact them for more information. Once they have the contact information the company can provide additional information and keep following up on the contact.

The company will keep track of the money spent on the advertising campaign and managing the campaign. Money spent on the campaign divided by the number of sales leads it produced will give a dollar figure of how much it costs to acquire a single lead. For example if the advertising campaign and managing the campaign cost $10,000 and the campaign produced a thousand leads the cost per lead would be $10.00. Conceivably then the company working through a cost per action marketing network could offer up to $10.00 per lead.

The fee is paid for an action taken on the part of the one inquiring about the product or service. This action could involve signing up for a newsletter, free report, more information or even purchasing the product. When the action is taken the company can now work the lead for about the same cost as before and maybe even less.

Wow! $10.00 an action, affiliate marketers could really make some money with that. Well yes and /or maybe. There is money to be made with cost per action marketing. Remember the company initially was spending money running and managing advertising campaigns to acquire leads. The affiliate marketer will have to do something like that to acquire leads. Affiliate marketers may have an advantage as this is what they do and they have developed marketing strategies that work for them. Although because of their expertise they will be able to minimize costs associated with acquiring the leads there will still be costs involved with setting up websites, providing a splash page, an effective sales page, and advertising expenses. Often the affiliate marketer will use pay per click (PPC) advertising to drive traffic to his lead capture page. If the cost of promoting your offer is less than the cost per action premium, then and only then have you made money.

If we compare cost per action marketing to cost per click marketing some of the differences stand out. Cost per click marketing say using adwords provides several alternative adverts to click. There are more chances of getting someones attention. Granted the revenue from clicking a cpc ad is much less than if an action is taken with a cpa ad. The cpa clicks are much harder to come by. It is important to give this some thought. The same effort should go into selecting a cost per action marketing niche as you would put into selecting a niche to market your product. Pitching your product to a niche where the people have a history of not spending any money will produce the same results no matter what you are promoting. If you are confident and feel you know what you need to do and feel that cost per action marketing is for you especially after you have done your homework then go for it.

Maurice Petersen is an affiliate marketer using articles to drive traffic to his blog. Visit my blog at http://www.stayhomeandworkonline.com and sign up for a free 19 page ebook: 3 Keys to Creating big Time Commission Checks.