CPA And Affiliate Marketing – Make The Right Choice!

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Topics: CPA

CPACPA and affiliate marketing are both online promotion models that help market your products and services online. Webmasters and advertisers use either of the two models to improve targeted traffic to their sites and to convert this traffic into sales.

CPA marketing – What is it?

CPA or Cost per Action is also known as PPA or Pay per Action. This is a pricing model specifically configured for online advertising. The concept of this model revolves around the advertiser only paying for an action that he specifically links with the advertisement. This action can be form submission, purchase of products or services or even an expression of interest.

Advertisers, who want to focus on direct response, typically consider CPA as the best way of buying online advertising. This is because payment is only made when there is action. Also, the advertiser gets the benefit of determining the kind of action that needs to be performed. As an advertiser your Cost per Action is dependant on the kind of inventory purchased by you, which has led to CPA also being referred to as Cost per Acquisition. What this means is that your CPA offer is all about acquiring new customers through sales. A wide range of businesses are covered in CPA affiliate and you can choose from specific product affiliates, pharmacy affiliates, and industry specific affiliates, amongst numerous others.

Affiliate marketing – What is it?

Affiliate marketing is an online marketing model wherein you are required to sign up for a particular affiliate program. Your program will offer you a unique link which can be put up on your website and blog. Your objective is to promote this particular link. If a user clicks on this link and purchases the product or service that is associated with this link, you will be given a pre-determined percentage of the sale. What this means is that you will only be paid for your affiliate marketing efforts if there is a sale.

As affiliate marketing uses many of the regular methods used for advertising, there are chances that it will overlap other online marketing methods that you might be using for product promotion. The methods include search engine optimization, banner advertising and e-mail marketing.

CPA affiliate marketing and traditional affiliate marketing – Differences

Both CPA and traditional affiliate marketing are quite similar in their working. But there are some points of differences:

In affiliate marketing, you are only paid a commission if a user clicks on the link and makes a purchase. On the other hand, CPA affiliate marketing will pay you if and when a user takes a certain action upon clicking on this link. This action can be as simple as entering a zip code or his/her email id.

There are more chances of the person taking that simple action as compared to affiliate marketing where he/she has to make a purchase.

CPA affiliate marketing – Various advantages

Now that you know what CPA affiliate marketing is all about, you might have also got an idea about its advantages over traditional affiliate marketing:

Say you have joined a CPA pharmacy affiliate. The action determined by the online merchant, is that a person who clicks on the link must enter his/her zip code. That’s it. This increases your chances of earning a commission as, it does not require the user to take out his credit card and make a purchase ( as required in affiliate marketing); all it wants the user to do is enter the zip code or some such action. Far more preferable!

Helps establish a connection with a potential customer. Once a user takes a specific action he/she becomes a potential customer. This helps you as a business decide which customer is more likely to buy your product.

The opportunities to make money within a CPA network are much more than an affiliate network. Both as a business and an affiliate marketer your profit margins increase if you choose CPA affiliate marketing.

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