Apr 2009

13

cpaCPA means cost per action.   If you’re familiar with the term CPC, which means cost per click wherein a person earns income whenever someone clicks a link (such as an adsense ad),  CPA allows you to earn if somebody takes a certain action such as filling up a lead form, email address field, or anything an advertiser counts as an “action”.

On one side of the coin, a lot of people don’t know about CPA or cost per action. On the other side, a lot of people are enjoying the big profits from their CPA marketing.

If you are on the side of the coin with people who do not know about CPA, then this blog post is for you.

You might have encountered web pages where you will be asked to fill in a small form with your zip code or maybe your email address. In exchange for your information, you are getting freebie goods or some sought after information. If you fill up these forms then that is good and you have been encountering CPA in your life for quite a while now.

Here are the major players in that business loop:

Advertisers

Business owners take advantage of the power of information and launch programs to know more about their market. Advertisements of CPA are specifically designed for this purpose. Big companies compile a database of their market profiles in different places to address their needs for new products, innovations, and other business stuff.

The ads that you will see on online pages will offer you a prize and the company in return will know, for example, how many people in a certain zip code care to know about certain products.

Affiliate

You maybe wondering how you ended up going to that CPA ad. There are people who do this for a living, or as source of their extra income, or the affiliates.

The user will end up filling up some needed information to get freebies when they see certain advertisements or links that are strategically launched or placed by the affiliate in certain pages of the net.

The affiliate will get some fees for convincing you to take action and give the information needed by the advertisers.

Cost Per Action Networks

In the CPA profits business, Cost per Action networks are in the middle of things. They act as bridges so advertisers can reach the affiliates.

The network deals with the advertisers and design the ads needed for their campaigns. They are also responsible for the strict process of recruiting affiliates who will push for the ads to the consumers. The CPA network also runs the efficient system of payment to distribute the profits to the affiliates.

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