What is CPA Marketing?
CPA marketing, also known as cost-per-action marketing, is a style of the affiliate marketing model that offers a commission to the affiliate when a specific action is completed.
The lead action can be anything from making a purchase to getting a quote, watching a video, or filling out a form.
When it comes to marketing your online business, your return on investment (ROI) is crucial to your success.
Take digital advertising. After pouring hard-earned marketing dollars into Google or Facebook ads, you must earnestly optimize your campaigns – testing, tweaking and hoping that all of your clicks eventually turn into sales.
Once you factor in gross profit margin, shipping costs, and other expenses, it’s difficult to maintain a strong enough return on investment to scale your marketing efforts. This is where CPA marketing comes in.
CPA marketing just might be the most scalable and ROI-positive way to monetize your website.
Unlike other marketing tactics where you pay to advertise your brand with no guarantee of sales, CPA marketing allows you to only pay after the sale occurs at a rate you determine.
For example, if you’re selling a $100 pair of sneakers and you pay your CPA partners a 10% commission after the sale, you only pay $10 in marketing spend and enjoy a return on ad spend (ROAS) of 10:1.
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