Understanding CPA to Become a Better Affiliate
CPA affiliate marketing is not just another model that affiliates use to earn money online. In my opinion it is more worth your while because it pays the most when you think about it in terms of time and money ROI (return of investment).
That’s because CPA offers usually provide their affiliates with higher commissions per sale or action.
When we look back at the history of advertisement we see how it evolved from being a typical newspaper and magazines ads to a much effective performance based marketing model.
In the old days, many companies would post an ad on newspapers, magazines, and television and radio stations with high number viewers in hope that some of those thousands of readers/viewers will buy their product.
Such advertisement techniques proved under-performing when it came to direct sales conversion, and it ultimately became merely a tool to increase brand awareness for the companies making the advertisements.
So by the time the internet boom era came, many advertisers demanded not only a strong online presence but also a better model to focus on increasing direct sales along with widening their customers base while at the same time keeping them loyal to their brands.
The Rise of Performance Marketing
Giving how there is tons of high traffic websites; it will be cost-ineffective to post an advertisement on all of those websites with a hope of bringing a flood of sales.
Not to mention that the advertiser will be competing with other companies on the same website in terms ad placement (so as an advertiser you will not enjoy the exclusivity for your ad).
The structure of web pages as well isn’t exactly advertisers friendly. According to many studies and tests made on web sites heat maps, we find that there are few places that can prove very effective for any ad.
Performance marketing came to address all these issues because it rewards publishers for not just placing an ad on their website but on the results they bring to the advertiser.
Results can vary from making a sale, or getting the potential customers to fill out a form or a survey or joining the advertiser’s mailing list.
CPA a form of Performance Marketing
Affiliate marketing in all its forms is a subsequent of performance marketing. It is a marketing model where the advertising company will hand out either a percentage of the generated sale or rewards them for a achieving a certain goal that the advertiser set for the affiliates.
This opened a vast room for advertising creativity, since now advertisers can demand specific goals to be met in relation to the nature of the product they are selling.
Also smaller businesses with lower advertising budget are able to compete with large corporations in the marketing space.
This is evident by the fact that you can see an ad for a big company like Pepsi next to an ad for a smaller company, more evident on websites that run Pay per Click ads.
Another example of such marketing creativity is the rise of CPA offers.
CPA offers are diverse, with the likes of game development and mobile apps companies (to name a few) usually create their products as freeware. They became in need of more downloads than anything else.
Companies doing market research also find themselves in need of diverse demographics to fill out their surveys, and getting people to fill out surveys is not something that a traditional banner ad can help generate good results for such goal.
Such goal is better achieved by offering affiliates a CPA offer, in which, if they managed to get people to fill out surveys then they will pay the affiliate commission.
That’s a great motivation for any affiliate because getting people to fill out an online form is easier than getting them to buy something (if the proper incentive is offered by the affiliate).
How Affiliates Make Money from CPA Offers
Many affiliate marketing courses and training now pitch CPA affiliate marketing as a good source of income as opposed to the traditional pay per sale model.
And that’s not without a merit, because there are many affiliates competing on the same products in the pay per sale model, and they find themselves in need of a better reward for taking on such a tough competition.
CPA can satisfy such need by handing out higher commissions that can reach up to $500 per acquisition while pay per sale affiliate programs can offer an average of $80 per sale (more or less depending on the product).
Your first step as an affiliate is to sign up for any CPA affiliate network and browse through the hundreds of CPA offers they list.
Solving the Traffic Restrictions on CPA Offers
The downside of CPA offers is that they require a certain type of traffic to their offers like:
- The Geographic of Traffic
- Promotion Techniques
Traffic Geographic: Some CPA offers target customers in specific countries and will not consider your sales, downloads and signups as valid ones if they came from any other country beside the ones they list.
While this can prove as an obstacle to your conversion rates, you can however overcome this by targeting your affiliate ads to the same geographic location as the advertiser requests. And that’s considering that you are running paid advertisement to promote your CPA offer.
If you depend on SEO to generate traffic to the offers you are promoting, then make sure you set your ranking target on the localized version of that search engine you are targeting. For example if your CPA offer only considers UK traffic as qualified, then try to optimize your SEO campaign to rank on Google.co.uk (the UK version).
If you depend on promoting your CPA offers to your list, then send your email blast to only the subscribers that are based in the same country as the one required by your CPA offer.
Promotion Techniques: You need to pay attention to the traffic requirement for any CPA offer you are promoting, as some will not consider the traffic coming from certain mediums as a valid one.
If you find that there is too much restriction on the source of traffic required by the CPA offer then you could create what affiliate marketers call a sales funnel.
One example of a sales funnel is channeling the readers of your blog or the visitors of your website into your list by getting them to subscribe in exchange for offering free PDF guide or report or other freebies.
You then build a relation with your subscribers and get them to trust you. And after a suitable period of nurturing and trust building, you can then send out an email blast promoting your CPA offer.
That’s considering that your CPA offer accepts traffic from email blasts (which many of them do).
And where you get the traffic to your list (social media, SEO…etc) is not relevant, as the traffic like I said is going to your list and not going directly to your CPA offer, and the advertiser will get email traffic from your list.
If you never tried CPA affiliate marketing before then you should not be timed to do so, because if you are to become a complete affiliate you need widen your net and get out of your comfort zone.
Basically the same concepts you learned from your experience as an affiliate or you learned from an affiliate marketing training or course are applied to CPA affiliate marketing as well.
So go ahead and start promoting CPA offers in a niche you are familiar with and the results could be better than the current affiliate marketing model you are involved in.