CPA simply stands for "Cost Per Action" or "Cash Per Action." Advertisers might use these programs to increase their sales, attract sales leads, get more visitors to their own websites, or even increase their brand exposure.
To accomplish this, the advertisers establish an affiliate program, and they recruit affiliates who they will pay a specified amount each time one of these actions gets performed.
Typically, there are 4 kinds of CPA programs:
CPS: Cost Per Sale programs pay affiliates per sale. The pay might be a fixed amount or a percentage of the sale.
CPL: Advertisers pay a fixed amount for attracting people who fill out a lead form. These might be sales leads or simply subscribers to an email list.
CPC: These programs pay affiliates for each click to a website.
CPM: Some advertisers even pay affiliates for the number of advertising impressions that they can generate.
How Do Affiliates Post Advertisements?
Affiliate programs usually provide their affiliates with a variety of linking codes. These can be cut and pasted onto various websites. The code may be for a text or banner advertisements, and most programs have a variety of different advertisement to choose from.
Which Type of CPA Offers Generate The Most Money For Affiliates?
This is a tough question to answer, but the real answer is it depends onwhere. The best-performing answers really depend on upon the affiliate program, your visitors, and your niche.
In my own experience, for example, lead programs performed very well in financial niches where the prodwerevery expensive, complex, and probably required more than just a website to sell. Financial advisers, insurance agents, and other financial professionals could make use of these leads as a way to contact consumers to explain their programs, but it was hard to just "sell" the products from a website.
You can find several lead programs on the Internet, and the right one really depends on on the type of online traffic that you hope to attract or already have.
Cost Per Sale Programs
For physical goods, CPS programs might be a better choice. I found that when people searched online for a book or a bookcase, they did not really need to ask any questions, but they simply wanted to find the right product and buy it.
Amazon is one of the most popular examples of a CPS affiliate program, and the site sells just about anything that you can imagine, so you might want to take a look. You can also find some good networks that contain a lot of different CPS programs, and one example is a company called Share-A-Sale.
Can You Make Money With Cost Per Click Programs?
Don't discount the money you can make from good CPC programs either. Typically, the revenue that you can generate from a click depends on upon the niche. Niches like insurance, medical, and law tend to pay very well. Niches for cheaper products and services will not pay as well, but you might be able to generate a lot more clicks in a less-competitive field.
Adsense is probably the most well-known example of a CPC program. Some people say they can't make any money with this program because the clicks only pay pennies. However, if you stick to higher paying niches, you are likely to get a dollar or a few dollars per click, and this money can add up fast.
Cost Per Impression Programs
Some companies will pay just for displaying their advertisements. They usually pay per thousand impressions, and they do not usually pay a lot. These programs are probably best when you have access to a lot of traffic, but you do not really think your traffic is of the type of actually buy anything or fill out a lead form.
For example, if you have a site that appeals to young people without credit cards, but you have quite a bit of that traffic, you might see how a cost per impression program does for you.
There Is Not A Best CPA Offer, But There Are Good Ones!
You will always need to test a variety of different programs. For example, you might try to capture leads on a page, but you might also have another program displayed further down the page to capture a buck or two from people who aren't filling out lead forms that day.