CPA (Cost Per Action, cost–per–action) is a method used to put a price on a particular action that seeks to be performed by a visitor. The owner pays a specific amount by the action a visitor made when it arrives through online advertising.
The actions can include from register an electronic mail or download a file to make a purchase, add a subscription, etc. The actions that are paid are decided by the announcers, as long as the amount to be paid can be decided by the advertiser, by a settlement between the parties, by an auction among other ads, etc.
The programs of affiliates that used a model called CPA marketing “cost by action“ ensure a profitable ROI, since their affiliates earn your Commission only when is performs a sale. The exclusive combination of a technology allows more people take advantage of to the maximum the potential of the CPA marketing to generate an excellent income residual.
CPA is very simple: you get paid when someone clicks on your affiliate link and completes an action.
The “action” can be just about anything, but usually consists of:
- Filling out a form
- Getting an estimate or quote
- Signing up for a free trial
- Buying something
These figures benefit from a CPA model because they oblige to its partners and affiliates to focus on users with high odds become customers and get sales. Beyond, as advertisers can define specific actions in which they are interested and for which remunerate to partners and affiliates, and any type of fraud related to the generation automatic clicks is minimized.
Direct response advertisers consider CPA the optimal way to buy online advertising, as an advertiser only pays for the ad when the desired acquisition has occurred. The desired acquisition to be performed is determined by the advertiser.
Radio and TV stations also sometimes offer unsold inventory on a cost per acquisition basis, but this form of advertising is most often referred to as “per inquiry”. Although less common, print media will also sometimes be sold on a CPA basis.