What Is CPA?
The phrase “CPA” sounds
about as exciting and attention- grabbing as accounting terms would sound to a
quilting enthusiast. It’s usually
rattled off in this acronym form, and the assumption seems to be that you’ll
know what it is. Acronyms (short forms
based on initials of words in titles) intimidate people, so many new internet
marketers tend to ignore or gloss over this marketing method – but “CPA” simply
means “Cost Per Action” or “Cost Per Acquisition.
Cost Per Action means that your reader
just has to take a specific action (E.G. input a valid email address, click on
a link, request a free sample, etc.)
Cost Per Acquisition means that your reader
actually has to buy the product or
subscription.
Websites (or reports like
this) dryly talking about CPA can hardly compete with “Make a six figure income
with no work – 1 week from now!” in excitement factor. But whether you’re
choosing to focus on Cost Per Action or Cost Per Acquisition, CPA marketing has one
common denominator: It is a form of
advertising generated by a third party in which you are paid for hosting or
promoting that party’s ad or link, based strictly on actions your readers
take.
This in turn generates any of the following actions for the advertiser who
is going to pay you:
New subscriber sign up
Ø Purchase of a product
Ø Sales lead for your advertiser’s further follow up
How much can you
earn? Well, typically… not
millions. New subscriber signups usually generate between $1.00
to $1.50 per lead. You definitely won’t get rich overnight.
But if you combine simple Cost Per Action with some well-chosen Cost Per
Acquisitions, your payout may be much higher. For example, if you’re promoting
a big-ticket item that costs $695, your commission that may be anywhere from
$60-$300 on lead that results in a sale.
A few of these combined with a bunch of easy “just click” links or
banners can make a nice little second income for you.
And once set up, it’s a painless way to add extra income generation from
your already-existing sites. Put CPA to work for you while you go off to the
church picnic or enjoy a well-deserved nap (after staying up all the night
before, trying to solve your shopping cart problem.)
And as your list grows, so too will your profits.
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