Cost-Per-Action (CPA) Marketing
Just like an affiliate network, where you are paid for a percentage of the sales you refer to a vendor, in a cost-per-action network you are paid for each lead you generate and you are also considered an affiliate.
Marketing savvy companies can evaluate the cost of every lead and compare that cost to the time value of a customer, thus they can decide how much they can afford to pay for every lead while still making a profit.
What Types of Action?
The main difference in a CPA network and an affiliate network is that purchases are not necessarily the actions for which you get paid.
Typical actions consist of capturing leads. That can be done by offering a free download, like a white paper, or by requesting a free sample of the product.
Leads can also be captured by offering detailed information for a particular service. For instance, you could have a request for an insurance quote based on information that you enter into a form.
Some CPA offers include coupons or chances to win electronic products like an iPad or laptop computer, or even chances to win a cruise or a weekend vacation.
Do These Actions Involve Money
Not always, but sometimes they do. Examples that comes to mind are the great variety of pharmaceutical that are offered as free samples, where the person requesting the sample is asked to pay shipping charges. A bit more rare are offers for membership sites where the action required is that they sign up for the first month of membership.
Most of the time, though, you think of CPA as a lead generation network, where all that you are responsible for as an affiliate is to get a visitors to enter an email address, or a name, or a full address, and perhaps request information about a specific product or service.
How to Capture Leads
Each program that you represent has its own set of rules that you must read and abide by; otherwise, you may lose the commissions you worked so hard to earn.
In most cases, you simply use your affiliate link to send traffic to the offer. Depending on how you refer that traffic, you may not even need your own website.
The lead is captured at the vendors website and you are credited with the referral. You are paid peridically according to the terms of each Cost-Per-Action Network.
Creating a lead-capture hub is a good idea also. Im using the word hub here to mean a series of websites all pointing towards the lead-capture page.
Some CPA marketers like to concentrate on offers that require the smallest action from a prospect, that way they can maximize conversions. But you also have to realize that the smallest action usually has the smallest commission, so it is not an easy formula, but by testing and tracking different offers you will discover your successful campaigns.
I would recommend that in stead of spending countless hours on one offer, you try to diversify and then you can dedicate more effort to the offers that are working best.
Cost Per Action (CPA) Marketing; Video Tutorial
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