CPA stands for ※cost-per-action§ and is a model of performance-based affiliate advertising. In this model, advertisers don't pay for clicks or impressions, they pay by the action requested, which can be to generate a lead or a sale. Even though CPA networks have less market share than typical affiliate programs, like pay-per-click models, they are slowly expanding that as both publishers and advertisers begin to understand the many benefits that CPA networks can offer them.
In a recession, people are less likely to have money in their pockets, so they may not be shopping. That means that the return on investment for ad campaigns has dropped. If they drop significantly, online companies cut their advertising budgets because they can't determine from traditional models, whether they money spent is really giving them a good return on their investment. But, with CPA networks, they can pay for cost-per-action and so continue to create ad campaigns that work for them and for the publishers.
Benefits For Publishers
Publishers can a myriad of benefits too! With CPA networks they can:
l Avoid Website Development 每 They don't necessarily have to even have a website to implement the CPA network offer, although they can be a good intermediary for some third party sites.
l Eliminate Designing Landing Pages 每 With or without a website, the need to create landing pages falls mainly with the affiliate advertiser. That's because they are paying for an action carried out on their site, not for a click or an impression.
l Reduced Learning Curve 每 Since you don't have to have landing pages, websites, or even code a web page if you don't want to, you have more time to devote to finding relevant CPA offers and generating strategies that make money.
All free software
l Higher Commissions 每 Clicks can get you a few cents per visitor, but CPA offers range from $1 to $50 per lead or sale. With a much higher payout available, the potential to make money is easier.
Benefits For Advertisers
l Pay For Performance 每 They don't have to pay for clicks that may or may not lead to a sale or a lead. Instead, they pay for an action that will definitely develop a lead or a sale. This way, they can a quantifiable return on investment, unlike other models.
l Easier To Budget 每 Since the model is based on performance, and that performance can be a sale, they can easily budget money for advertising and know they aren't wasting it. They can figure out how much profit they make on a sale and how much their campaign costs to generate that sale, and then realize better and better ways to increase profits, with little to no risk of losing their principal investment with no return.
l Fraud Prevention 每 CPA networks are not subject to click fraud like pay-per-click models. And, the members are vetted by CPA administrators intent on providing value to both publishers and affiliate advertisers. So, there is far less risk involved with established CPA networks.
