What is Affiliate Marketing and why should you start with CPA Marketing?
Affiliate marketing is the process by which an affiliate earns a commission for marketing another person’s or company’s products. It has become increasingly popular due to the high commission payments, no need of infrastructure required to start a business, relatively low overhead and the ability to sell tangible products.
What is a CPA? CPA stands for Cost Per Action or Cost Per Acquisition. CPA is a type of affiliate marketing whereby you earn money for sending potential customers to a merchant’s website, but this isn’t the same as a sale. A sale involves a sale of a product, usually tangible, and the customer goes on to purchase a physical or digital product. Whereas with a CPA you earn money for sending him to a merchant’s website, but what you earn depends on whether he filled a form, clicked a link or just left the site without doing anything.
What it boils down to is the price you have to pay to get the visitors to fill out a form, click a link or purchase a product depending on their level of involvement. So while there is a 50% commission on a sale, there’s also a 10% commission on an informal action.
The more informal the action, the less you will have to pay to get them to fill out a form. You might make only $10 on an informal action, but 10 dollars plus filling out a form is an action worth doing.
The key to making a lot of money with CPAs is to find the products that will resonate with CPAs. You want to sell a product that is high in demand, but not necessarily the highest selling. Find a product that is in demand, but doesn’t have a huge markup as the commission will reflect your effort. Sell these types of products and your earnings will be huge. Sell a product with a high markup and you will only need to pay for the action so many times, but it will take much more time and likely be harder for you to get the sales.
I hope after reading this article you understand a little bit better what Affiliate Marketing is and why CPA marketing is a very good way to get started with Affiliate Marketing.