The desire to earn is growing in us every day. And not so much because of the high cost of life, but because of the reluctance to sit in the office from morning to evening, receiving a living wage. We are constantly looking for new and, importantly, relatively simple ways to make a profit. As one of the options you can consider CPA marketing - not a new and rather complicated compared to other methods, but because it is still a working method of making money on the Internet.
What is it?
The very concept of affiliate marketing has been known for a long time. But right now, the financial flow (CPA-marketing is most often regarded as obtaining a steady income), obtained from attracting customers to the advertiser's website, is formed not due to a simple “click on the link”, but from the position of the “predetermined behavior” of the potential customer.
What does this mean in simple words? If earlier companies paid for visits to their pages and for direct advertising on blogger sites, now the situation has changed. Sellers need effective targeted spending budgets. CPA marketing involves paying for a specific action of a potential customer. Registration, subscription to the newsletter and commercial offers, application, registration of the purchase of goods (ideally) - this is a small list of the very conversion (desired) actions.
Modern Internet Marketing
If at the beginning of the development of the Internet we talked about the fact that the creation and maintenance of your website with a description of the goods is 90% success, today such an advancement will yield absolutely nothing. The competition is so great, and also supported by the fact that the Internet literally knows no boundaries, that it is necessary to constantly stimulate potential consumers and direct them “along a given route”. In general terms, this is Internet marketing. But what is the place of CPA marketing here? Advertiser feedback on the effectiveness of the approach is simply mesmerizing.
For example, a travel company only pays for registration on its website. If the client did not do this, the advertising agency does not receive a fee. And vice versa, the larger the database of the tour operator - the higher the profit of the promotion company. Thus, allocated budget funds are allocated much more efficiently.
Many names - one essence
So, performance, affiliate marketing, affiliate, CPA marketing - all these concepts are used to determine the model of promotion of goods (services) on the Internet, in which certain actions of network users are paid. Specialists use such tools as direct and contextual advertising, SMM marketing, search engine promotion, etc. But it is worth paying attention to the fact that for the advertising party in each of the listed models its own financial flow is formed. CPA-marketing (feedback from bloggers and active users of social networks sounds very convincing) allows you to make a profit almost from the first week.
The model is not new, but effective
Internet marketing is actively developing, and the consumer is no less actively looking for ways to leave, hide from intrusive direct advertising. Therefore, marketers have to look for more and more elegant ways to attract potential buyers.
As loopholes are getting smaller, the business is faced with the question of how to increase the effectiveness of marketing activity. And here comes the CPA model to the rescue. The return on investment is almost 100%. First of all, due to the fact that the advertiser himself does not expect anything supernatural from visitors to his site.
In such a situation, a digital agency can significantly increase its profit.
Why do they like affiliate marketing?
The most obvious advantage of the CPA model is the ease of measurement. The client subscribed to the newsletter - paid, did not subscribe - sorry. It is this simplicity in determining effectiveness that attracts all participants in the promotion chain. But, of course, this is not the only plus that CPA marketing can boast of. Reviews of experts allow us to highlight the following reasons for the popularity of this scheme:
- For the offer, this is a very profitable budget spending system. Payment is made only for the desired (and useful) actions of the client. In addition, there are practically no financial risks. Indeed, compared to investments in contextual advertising and SEO, the offers know for sure that they will achieve the planned results.
- Marketers also receive rewards for targeted leads. Therefore, they are forced to come up with new incentives that are interesting to consumers. Since most often payment for conversion actions is higher than fees for traffic, clicks and impressions, advertising agencies are interested in using CPA marketing.
- The owner of the review (entertainment) site will also maintain its resource at a high level. After all, he needs a constant stream of readers who will be shown advertising in the framework of the CPA model. The higher the popularity of the portal, the more opportunities to earn (or simply increase the payment for a single action).
In general, each of the participants, in addition to the elementary financial benefit, also receives additional bonuses - from the ease of planning an advertising campaign to the development of a resource.
Possible options
Among the whole variety of possibilities for using marketing with payment for conversion actions, we will choose and consider the most popular ones. Effective CPA marketing, examples of which can be quickly studied, looks like this:
- Lead Fee (CPL) - product advertising is considered “completed” if a potential customer clicked on the link and at least registered (left an email address).
- Selling pages or sites (on one page or full resources with landing pages) - here the visitor receives complete information about the product and is redirected to manufacturers where he can make a purchase. The task of advertisers is to qualitatively stimulate the consumer so that he really has a desire to buy a product.
- Promotion with payment for actions is very similar to traditional content marketing, but CPA marketing assumes that payment will not be made for traffic or place in the search results, but for specific actions of the network user.
- Review sites - these resources have a lot of information about products, their comparison, etc. It also publishes user reviews, reviews and ratings. Each such description leads to the page of the advertiser (manufacturer or authorized seller) and, if the client follows the link and buys the goods, the owner of the review site receives a reward.
CPA chain participants
Now you need to understand who and how is involved in the promotion chain that ensures reliable financial flow. CPA marketing, reviews of which are very diverse, is carried out, at least, with the participation of three parties: the seller of the goods - an advertising agency (full cycle or specializing in digital) - owners of blogs and popular sites. The first two are called offers, i.e. persons offering payment for attracting consumers to their site. But, as already mentioned, CPA marketing without investments (without investments and content payments) is not just traffic; This is a payment for specific actions of the site visitor
Therefore, owners of review sites or popular infotainment portals are much easier to earn. After all, tens of thousands (experts say that the normal statistics are 15-20 thousand) of visits per day will surely provide the necessary number of conversions. Another thing is that the consumer is becoming more demanding, and getting him to do something is not easy: you will have to make an effort and think through real incentives.
Where to use performance marketing?
Online stores, coupons, service companies - these are the most suitable projects that CPA marketing will help. Earnings (expert reviews are encouraging) can reach high numbers. But only if the site owner correctly evaluates his audience and places offers of suitable offers. The product should be clear to visitors, meet its interests and financial capabilities.
Promotion of exotic, individual products using CPA marketing will not produce the desired results. After all, buyers of such goods are few in number.
A bit of history
For the first time, the American agency Fluent spoke about the use of the CPA approach to promoting goods. According to the director, the company increased revenue to $ 40 million over the year (an increase of 850% over the previous year). From that moment, experts started talking about increasing the effectiveness of promotion on social networks. What did Fluent do that later became known as CPA marketing? Training begins with the fact that CPA is an abbreviation of English “cost per action”. Literally, this is "pay per action." And then you need to provide the advertiser with specific consumer actions: likes and sharing in social networks, listing promotional coupons, subscribing to newsletters, etc. But this was already mentioned at the beginning of the article.