What is a CPA Network : Why you need to know

A CPA (Cost Per Action) Network is the mediator that provides platform (i.e., network of affiliates) between the advertiser (or Business) and affiliate marketer (publisher). Means, advertiser can place its adds or affiliate links on the publisher’s website, through use of CPA Network. And then can request goods or services, fill out a query form, install an app by driving traffic of the publisher.

CPA Network well established platform that provides matches for advertiser to the best affiliate (publisher). For example, a jewelry ecommerce site wants more leads (or other actions) from the traffic of another website. So here CPA network will help out to place an add on the affiliate marketer’s site though which traffic to the jewelry shop.

Benefits of CPA Networks

Here are some of the major advantages of Networks:-

  1. Beneficial for Affiliate and the Business: Sure, in simple it’s a deal of profit between both. Affiliate can use its own traffic to earn commission where the business boosts up its overall sale (or other action like fill out a query form etc.).
  2. Brand awareness: May be your brand is not so popular, in such case it does a brand promotion and awareness between the peoples.
  3. Lead collections: Leads play a vital role ever. You can always use the details later to promote your products or services by email marketing or by many more using social media.
  4. Safe: Its safe for affiliate and the business since the responsibility handled by the CPA network. CPA network should be trustworthy like AdWork Media, Advendors, MaxBounty etc.
  5. Big Market: Since it is a network of affiliates, all the things are already well managed like commission, sales, management etc. Your probability of getting more customers or desired action surely be increased after once join the CPA network. It is inexpensive deal with high ROI.

CPA Network Terminology

To get started with affiliate marketing, you should be know about basic terminology and key metrics:

  • Cost Per Action (CPA): The cost of advertising divided by the number of actions taken. For example, if a business spends $500 on a campaign and there are 10 actions associated with that campaign, the cost per action is $50.

    You can calculate the CPA by following the below formula:
    CPA = Marketing cost / Number of actions
  • Cost Per Lead (CPL): The total cost you spent on a particular campaign, divided by the number of successfully generated leads.
    CPL = Total campaign cost / Number of leads

    For example, If an ad campaign costs you $500 to run and you generated 1000 leads:
    CPL = $500 / 1000
    CPL = $0.5
  • Earnings Per Click (EPC): The simple way to calculate your earnings per click is to take the amount of total sales you’ve made and divide it by the total number of clicks you’ve sent to an offer.
    For example, if your affiliate campaign generates $100 from a total of 100 clicks over to a product landing page, then your total EPC is 1 (Total earning/ Total clicks)
  • Chargeback: When a commission is deducted because a sale fell through (i.e. the item was returned or the customer requested a refund).
  • Commission: A percentage of the sale price of a product that is paid to the affiliate for an attributed conversion.
  • Conversion rate: The percentage rate of website visitors that turn into customers divided by the total traffic.
  • Cookies: The user who clicked on affiliate link or an ad, cookies are used to assign a unique ID to follow the track conversions.
  • User: A user who click on the add or affiliate link which lead to sales to the advertiser and commission to the publisher
  • Offer page: The webpage where the conversion occurs after a customer takes the required action.
  • Return on Investment (ROI): Net profit divided by the total cost of the investment, or ROI = Net income / Cost of investment x 100.
  • Track conversions: Way to monitors the actions, users take toward the completion of a business goal. Actions like to signing up for a newsletter, install app or program, adding an item to a cart.
  • Minimum payout: The minimum amount of money an affiliate has to make before getting paid.
  • Commission type: The type of conversion like clicks, leads, sales, install –– the affiliate has to generate.

CPA vs Affiliate Marketing

Affiliate marketing constrains up to sell products. Means an affiliate can earn commission only if user (traffic) clicks on the affiliate link and get purchase the reference product successfully. Now CPA (Cost Per Action) network model extend the concept. On any desired type of action taken up by the user, the publisher earns specified amount. Actions could be like fill out a query form, install an app.

Challenges to Join CPA vs Affiliate Marketing

Infact, priority in both you should have the good traffic, weather it is on the Facebook or on you website. Comparing to Affiliate marketing , joining CPA network is little bit challenging.

Affiliate Marketing

Here you have to finally make the product to be purchased though the affiliate link, then only you get commission upon that product.

Surely you heard about the popular Amazon Associates program, in which you get the affiliate link to the products that have your affiliate ID appended. Once using the link any customer purchase you will get the commission. But to be successful, you have to do work lot to promote the product on your site, make you followers to be impressed and at last to be eager to purchase the product .

CPA Marketing

On other hand Cost Per Action (CPA) Marketing is a affiliate model where a commission is paid when a user takes a specific action. These actions include filling out a form, getting a quote, install an app, or making a purchase.

For affiliate marketer, to join CPA network, you have to apply, might have conversion/interview, review you traffic and after accomplishing the required joining steps you get approved. Joining steps varies with different CPA networks.

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