For those of you who aren't familiar with CPA, you really need to read this post and take some action. I'm not talking about your Certified Public Accountant, I'm talking about Cost Per Action. This is where a website owner will pay an affiliate for a particular action that their visitor completes.
For example:
I own a business opportunity website, I want more leads. So, I put my offer in an affiliate network and offer to pay an affiliate $3 every time a visitor fills out a particular field. It's up to the website owner to monetize the new lead, the affiliate has made his commission and is on to the next.
CPA is a great way to make some serious cash, it's so much easier than trying to get your visitor to purchase something and it's much easier to test on a smaller budget.
Let's compare:
If you wanted to sell a Clickbank product that cost $99 and your commission was $70 you'd have to test your traffic for about 3 times that much to see if it was worth it. In this case, you'd need to spend about $210 on ads to see if it will convert well enough to go big... that's a pretty heavy amount to test with.
Now, with CPA, let's say you want to promote a dating site that pays $4 per lead. You throw up a banner or a PPC campaign and test it out for three times the value of the lead or $12. If within $12 you don't see some conversions you know it's not worth your time. Much easier to swallow $12 on a test than $210.
There are several networks out there... Some are difficult to join. My favorites are Max Bounty, Azoogle, Clickbooth and a few others. You first need to submit an application, wait a day or two, then call them. Typically they won't approve you if you don't sound like you know what you are talking about so make sure you do the research. Drop me a line if you need help. The easiest one to get approved for is Max Bounty, there is a link to their site just to the right of this post.
I know I broke my rule about posting on Sunday but I wanted to talk a little about this. I also broke my rule of running ads on Sunday, I started one at about 5:30 pst and I've made over $130 promoting a CPA offer that pays 90 cents a lead. And yes, that's $130 profit, after I deduct my ad spend.
Sunday, April 11, 2010
CPA is the Way
Posted by Ryan at 9:15 PM
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