Important Things To Know About CPA Offers

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Things to Know About CPA Offers

By Nathan O. Gold

CPA stands for "Cost Per Action." CPA is, in-fact, really simple: you get paid every time someone clicks your given affiliate link and/or completes a required action.
This "action" can be anything, but usually consists of either buying something, surveys, signing up for free trails or just visiting a webpage
You might think to your self Why choose CPA? Well personally I prefer it over banner ads, AdSense or other affiliate marketing strategies.
Simply put, CPA gets you Higher payout on the Value Chain, which means it pays more than most marketing strategies and secondly, because of the integrated advertising, you can smoothly integrate Cost Per Action offers into your site. This means you run a clean, brand and professional site.
Where you might know the clean basics of CPA you might not know the truth behind it for the advertisers.

So how could CPA advertising potentially benefit advertisers?

Generally, CPA, involves lesser risk than most advertising methods. Since the only time you really pay is when you actually get a lead or a sale, you are protecting yourself from potential eyeballs that won't convert, as well as click fraud. Those possibilities can be heavy on your wallet.

At the same time, you're making sure that the only time you pay is when you have revenue coming in, or when the prospect for funds coming in is considerably large.

How could CPA affect advertiser's campaign efficiency?

You can actually lose your money from a particular cost per action campaign if you have an extremely low leads to sales ratio. This maybe because you perhaps could be paying publishers considerably more for leads compared to your sales revenue.

This strategy might be worth it if indeed you have a plan for converting more leads to sales in the long run or if you think that the advertising exposure actually may outweigh any current loss in revenue.

If you are losing cash, you might be able to negotiate lower costs per action fees from the publishers hosting your ads. or you can move over to a different campaign based on your real sales. Whatever your choice, know that your success at generating profits can impact your ability to find a good publisher who is willing to run your ad on a CPA basis.

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So why might some networks not want to run your ad on a CPA basis?

If you don't have a strong and steady track record for the specified type of action, most publishers might determine that they are better off hosting ads that have more potential for bringing them extra revenue.

For example take Google's cost per action advertising program, Google places your ad,on its affiliate websites and chooses when to show it. But in order to qualify for the program, advertisers must prove that they actually have the skills and knowledge to manage a site that attracts a desirable number of audience, has enough revenue generation, and makes enough money. The exact criteria may differ however.

Various networks may also decline you because of your record or champagne taste on a beer budget. They may question you about various things like online revenues, monthly marketing budgets, and cost per action offers in their online advertising applications.

However, all hope is not lost as there are some individual companies that are quite more lenient and have lower criteria.

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