Cost Per Action Advertising
by Hal Major
CPA stands for Cost Per Action. It is also called “conversion-contingent” advertising because it requires your visitor to complete a conversion for you to get paid. It is a way to monetize your website by getting a visitor to complete an action. Typically this is complete a survey, give their zip code, sign up for a free trial, make a purchase, etc.
CPA Affiliate Convention
CPA v. Adsense
CPA is popular and an excellent way of monetizing your website, blog or newsletter. It often pays a lot more than Google Adsense, with costs per completed action of $15 and more is not unusual. Of course, unlike Adsense where the visitor just needs to click on an ad for you to get paid, with CPA they have to complete the required action for you to get paid. If the visitr just clicks on the ad and doesn’t complete the action, you don’t get paid.
The rule of thumb with CPA is that the more the user has to do to complete the action the more you will get paid. You will also find that if the action involves making a purchase or signing up for an offer it will pay more than just completeing a survey, for example. There can be exceptions to this but it holds true for most CPA offers.
Higher Conversions?
CPA offers can pay you very nicely and can be much easier to convert than traditional advertising. For example, how many people will turn down a free sample of shampoo? Most people will sign up for that if they see the offer and when they do you will get paid. Offers like this won’t pay you a fortune, but you can more than make up with it in volume. Assuming of course that you have visitors to your site 
.
With CPA offers you need to ask yourself is it better to have one person convert at $15 or ten people to convert at $2? Most people will ignore the lower paying CPA offers, instead focusing on the high paying ones and in doing so, miss out on potentially earning more money. Remember, the lower paying CPA offers typically require the visitor to do less and so are easier to convert.
Flexibility
One of the best things about any CPA network is the amount of different ads that they provide you. They want you to convert people to complete the action, so they give you lots of different sized ads that will fit in different spots on your site.
CPA adverts are an excellent space filler for those odd corners of your website where there isn’t really anything going on and you have empty space. They always help add to your revenue model.
More About CPA Advertising
Do you want to know more about increasing your earnings using Cost Per Action advertising? I have a free book you can get. Just fill in the short form below with your first name and primary email address and I’ll send it to you. I require that you confirm your request, so the first email you get will ask you to click the confirmation link. I will then send the ebook to you in another email.
Here’s the form:
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Comments
11 Comments on Cost Per Action Advertising
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vinay on
Wed, 18th Feb 2009 10:00 am
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tom from advertising agency on
Mon, 27th Apr 2009 4:25 am
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Bob from radius search script on
Thu, 14th May 2009 10:49 am
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Sean from PaulClutterbuck.com on
Sun, 7th Jun 2009 4:57 pm
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Rob from Rakeback Poker on
Sat, 11th Jul 2009 1:19 pm
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Bingo on
Wed, 15th Jul 2009 3:52 am
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Hal Major on
Thu, 16th Jul 2009 4:49 am
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Noah from business development blog on
Mon, 17th Aug 2009 4:21 pm
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anton from gambling on
Mon, 16th Nov 2009 7:17 pm
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advertising business on
Thu, 28th Jan 2010 11:19 am
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ipad contest on
Wed, 3rd Feb 2010 5:45 am
CPA is a much better way of monetizing your blog because commissions paid are very high for a single action taken . You get upto $100 for a single referral as compared to making the same $100 after referring 500 people using PPC advertising.
vinay’s last blog post..Online Money With Google AdSense Part – II
From the advertiser’s point of view too CPA is a much better model than impression based payment or even cost per click. Too many people see visits or views as being a measure of success but if these aren’t leading to any profit then you’re throwing your money away. With CPA advertising there’s far less room for wastage, which will make it increasingly popular in these times of cutbacks and tight purse strings.
CPA can certainly work nicely when used properly. Sometimes finding an offer that converts profitably is the hardest part.
Great post,
CPA is many ways better than Adsense. I make more money with my CPA sites than my Adsense sites.
I favour PPC to CPA.
Keep up the good work
Could you tell me where would one go about finding these CPA advertisers?
Rob’s last blog post..Poker Staking
Great, but can you tell me how you make this feasible and how much you charge to do it?
Hi Bingo,
The first thing to do is get my free ebook on CPA by filling in your first name and email address in the form at the end of the article. Once you have read through the ebook, if you want me to assist you please use the contact us form on this website and we’ll talk.
Regards,
Hal
@Vinay: It might not be a better way to monetize based on what your blog/site is about. For some it might be next to impossible to find an offer to match your content, and for others they might just not convert for anything. In those cases it\\\’d likely be better to put something like adsense or some other cpc ads up.
Noah@business development blog´s last blog ..Service Your Existing Customers, Get Referrals! 
CPA and adsense are a very good option if the marketer is an expert attracting loads of targeted visitors. This way the massive traffic is the replacement for the revenue share model.
Hmmmm….. never thought that before. May i repost it to my blog?. Thanks for sharing ^_^.
thanks tor explaining it that way
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and oh, if you want a pic to show with your comment, go get a gravatar!
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