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CPA Marketing – What is it?

CPA stands for Cost-Per-Action or to be more technical, Cost-Per-Acquisition.  It is when you as an affiliate get paid when you get a prospect or lead to do something.

There are different ways and types of actions that a lead must do before you get paid but the best thing is that you as the affiliate get to choose.

You can choose an offer where a person just needs to try a product on a free trial basis.  The person only pays shipping and handling of anywhere from $1 to about $5.  When the person takes the trial offer through your affiliate link, you get paid!  Some of these trial offer pay affiliates as much as $35 for each trial offer taken by the customer.

A lot of people ask how companies are able to pay an affiliate as much as $35 for per customer brought to them and the answer is simple.  The company knows how much each customer is worth to them, they have done their homework.  When an affiliate introduces a new customer to a company, the company takes that customer through a whole sales funnel process.

In the case of CPA, initially a customer gets re-billed for a product that they took a trial offer for but that’s not it.  That same customer is offered many other related backend offers to generate even more revenue from each customer.  So you see each customer has the potential to be worth hundreds or even thousands of dollars to the company that created the original offer that they only paid you $35 for.  Now do you see how this is so lucrative?

This works the same way with lesser paying offers like zip or email submits.  What is a zip or email submit?  It is a model where the affiliate gets paid for providing leads but the customer doesn’t have to buy anything.  They just have to put in their email contact information or in the case of a zip submit their zip code.  Personally I like zip submits because you are literally getting paid for someone entering in the zip code where they live.  Now it is not $35, it is anywhere from .45 cents up to $3 and the same goes for email submits.

Zip and email submits are still very lucrative because they are much easier to get a lead to take action.  Just think if you used a method of paid traffic and you paid for 10,000 people to go to a zip submit offer about getting $250 in free groceries.  The paid traffic cost you .05 cents per click, which is a total expense of $500.  Of the 10,000 visitors that you send to the CPA website that only requires a zip code, 2,500 people put in their zip codes and the affiliate receives $1 per person, that’s $2,500.  So you spent $500 to make $2,500.  That’s a profit of $2,000 per day or $60,000 profit for just one month!  Can you say lifestyle change?  There are tons of affiliates doing this over and over again and you can do it too!  You just have to learn the methods and increase your skills.

Have a question about CPA?  Leave a comment.

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Friday, April 23rd, 2010 Cost-Per-Action/Acquisition (CPA)

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