CPA, the acronym that defines “Cost Per Action”, is an affiliate method that makes money quite easily, especially if you manage to deliver a huge number of sales.
In other words, the business pays the affiliate a certain percentage of the value of the product that the affiliate, through its promotional methods, has managed to sell. Find out everything you need to know about CPA marketing and how it works below!
What is CPA marketing?
If you’re wondering what CPA marketing is, things are pretty simple: it’s a form of passive income whereby a person who succeeds in selling the product of a particular brand, business and thus receives a certain commission from the price of the product. The amount of the commission differs depending on the terms of the affiliation and can be higher or lower.
In general, commission is paid when a person, guided by the third party affiliate, buys a certain product, signs up for a test campaign, participates in a market survey, watches an advertisement or gives feedback if they have already bought the product.
Affiliates are paid commission when the referred person has successfully completed the requirements.
CPA marketing versus affiliate marketing
Unlike affiliate marketing, where affiliates are paid a certain commission of the product value only when they succeed in bringing in people who purchase that product, CPA marketing is a form of affiliate marketing where you are offered a commission simply by having the person you brought in complete a survey.
In other words, it’s much easier to earn passive income from CPU marketing than from affiliate marketing, because there are also many ways in which you can earn some commission. Sometimes it’s enough for the user to click on an affiliate link that redirects them to a specific page.
Benefits of CPA marketing
CPA marketing has many benefits, especially if you are targeting, as an affiliate, a target audience whose online browsing behaviour you know.
Especially if you’ve already created a solid community, you can earn good money as an affiliate CPA marketer. Beyond the always welcome passive income, you can grow your blog or platform through CPA marketing.
CPA marketing isn’t that different from other marketing strategies, which means that many businesses, brands and businesses are turning to this strategy.
And that’s a further extension of the opportunity to make a business visible and therefore increase its number of potential customers, with low risks of incremental and failure.
Easy to set up
It’s also easy to launch and set up, as it doesn’t require high costs. Once you partner with a CPA affiliate network, you can even get instant traffic to your own site.
For an online store, for example, traffic is vital, and when advertising is already integrated, you can say you have double the results.
As an affiliate, as opposed to being able to make passive income from Adsense-supported ads or other types of strategies, which often make it difficult to use a website or blog, CPA marketing-supported offers can be much easier to integrate into your blog.
They will be much more subtle and thus won’t decrease your site traffic.
How is CPA calculated?
The average cost per share (CPA) is calculated by dividing the total cost of conversions by the total number of conversions.
For example, if there are three conversions, one with a cost of RON 10, one with a cost of RON 12 and one with a cost of RON 14, the average CPA for these will be RON 12.
How to optimize costs per CPA?
To optimize costs per CPA, affiliate managers can consider guiding their affiliates in approaching certain strategies.
For example, they can review affiliate offers and provide strategic information about whom to target, how to insert links, and information about ads used to optimize conversion.
Content advice also proves vital, as it often defines the marketer’s product image.
Advertisements should be changed at a certain time interval and bonuses and even prizes can be offered to the most active affiliates, who record the highest conversions.
Businesses can also recruit the affiliates who record the highest sales for a particular niche, even ask affiliates for their opinion and negotiate contracts with them.
The way in which products or services are displayed is essential, as it is the first contact with potential customers.
CPA marketing model
For a clearer example, let’s say you want to affiliate with a beauty store that offers this opportunity. You already have a community, so you present your community with an offer on a lipstick that costs 100 RON, telling them that it can be purchased through the link you deliver.
The percentage that goes to you is 10% per sale. If 10 people buy the lipstick through your link, then for each purchase you will receive 10 RON. That means you get 100 RON because your message has resulted in 1000 RON in sales for your beauty shop.
CPA marketing promotion methods
There are many methods of promotion through CPA marketing. Depending on the field of your business, you can turn to websites that deal with reviews, quizzes, social media platforms, landing pages, each of which has the potential to increase your website traffic and therefore active sales.
Best CPA marketing networks in Romania
Regarding the best CPA marketing networks in Romania, they are the following: Admitad, Peerfly, Clickbooth, Max Bounty.
You can also find the best CPA affiliate marketing networks here, each with specific potential in terms of being able to record transactions and promote your brand.
How to make money with CPA best practices
First and foremost, you need to know your audience very well and there needs to be a maximum degree of interconnectedness between you and them.
Loyalty, too, is a key variable if you want to record successful, numerous transactions through affiliate CPA marketing.
There is no recipe for success, but consistency and trying to deliver content in a harmonious, friendly way.