What is CPA Marketing?

CPA (Cost Per Action or Acquisition) Marketing refers to an online strategy where an advertiser pays the web publisher every time a customer takes a specific action. This may involve filling out a form on a site or actually making a purchase. Once the customer fills out the form, buys the product or takes any other action; the advertiser gets a commission ranging from $1 to $22.

How CPA (Cost Per Action) Marketing Works

1. It develops sales and new customers

   CPA (Cost Per Action or Acquisition), refers to the commission advertisers make on specific actions customers take on website ads that could lead to sales. Not only is this a way to develop new customers, but CPA methodology also measures ad effectiveness. Additionally, conducting research is critical to advertisers because it helps identify sources that drive targeted traffic to a website and the advertiser's ad. Facebook pages, partner links, keywords and YouTube are all great sources for getting traffic to a site.

2. It is a low-risk strategy for advertisers

   With CPA marketing, the advertiser only pays the web publisher once the customer takes an action resulting in a lead or sale. In fact, the web publisher takes the greatest risk with this methodology because the publisher depends on the ads to deliver high conversion rates in order to get paid. For advertisers, CPA measures ad effectiveness without assuming the majority of the risk.

3. It helps advertisers find their niche

   Targeting traffic is important with CPA marketing. Identifying website publishers offering compatible CPA sites with the advertiser's brand, blog or website is a great way to target traffic. Once the advertiser figures out their niche or targeted audience; the advertiser selects and applies to the appropriate website. It could be advertising on sites catering to lawn and garden devotees, pet owners or DIY aficionados. By targeting the audience, the advertiser has a better chance of driving traffic to the sites that will produce leads and sales.

Why CPA (Cost Per Action) Marketing Matters

1. It builds your web audience

   Better visibility drives business. You can develop new business relationships locally, regionally and internationally. With a performance-based model, paid searches, blogs and other high-performing affiliates only get paid after they make the sale.

2. It can encourage a harmonious publisher relationship

   Working together, both the publisher and the advertiser can reap benefits of CPA marketing. With fraudulent activity increasing online, selecting a web publisher with a strong and secure site saves an advertiser lots of headaches down the line. Additionally, CPA marketing may have higher startup costs than other kinds of strategies. Working with affiliates on low start-up fees and maintaining transparency about the commission structure keeps everybody happy.

3. It helps you target your traffic.

   Focused traffic with CPA marketing may get you to those sales much faster than any other kind of strategy. Once you figure out your business model and your niche; target your ads appropriately. Remember, like attracts like. This is a philosophy that could pay off in a big way.