Promoting online CPA offers can be both profitable and exciting. However, it’s not without risk. If you’re considering diving into the world of CPA marketing, then read this!
Whether you enjoy creating multi-layered campaigns or multiple campaigns, CPA marketing can turn you a profit with both. One of the most attractive things about CPA marketing is the sheer number of offers available for promotion. You can promote pretty much anything; from houses to hanging baskets and everything in between.
CPA or Cost Per Action refers to the overall earning strategy. You make money every time you send a person from A to B, and they complete a specific action. Once the customer completes the necessary action, you get your commission. The reason CPA marketing is so popular among sellers and affiliates alike is that there is a reduced risk on the part of the seller and the potential for massive gains on the part of the affiliate.
Actions can range from anything such as clicking on a banner ad or filling in an email address to purchasing a product or service. This is why many people think that CPA marketing looks relatively. However, there are other costs to consider, and these can be make-or-break for affiliates.
CPA marketing relies heavily on affiliates paying for advertising space to get people to their links. This is usually paid for using PPC or Pay Per Click. This means that every time someone clicks on one of your ads, you pay the site that publishes your ad. The price of each click can vary quite a lot and can range from a few cents up to several dollars, making it potentially very costly. This is where a lot of the risk is involved as you need to be able to ensure that you are making more than you are spending.
CPA refers to the amount paid out by advertisers every time you get a customer to make an action. These action can be generating payments or entering their email address for registration.
How Does CPA Work?
Let’s imagine you are promoting t-shirts and for every t-shirt sold you get $10 CPA. If you spend $1 on one click and after 100 clicks you have sold 10 t-shirts, you will be break-even because:
10 t-shirts at $10 CPA = $100
100 clicks at $1 = $100
$100 minus $100 = $0
As you can see, the above example isn’t very tempting, but it is realistic, and it’s why most people get put off. If, using the rate above, you sell on 10% of your clicks, then you need to optimise your campaign to at least 11% to see a profit.
Getting to a stage where you break-even, like in the example above, will take time. All affiliates lose money in the early stages. That’s why it’s important to have some capital set aside from the start. The ultimate aim of the game is to keep balancing the numbers and optimising your campaigns until eventually, you make a profit.
The great thing about affiliate marketing is that, once you have found the right balance and can be relatively sure of a profitable CPA campaign, you can scale it to make even bigger profits. When you can do that you’ll start to see real rewards. It’s a long journey and not as easy as people think, but the potential rewards are awesome.