CPA stands for, 'Cost-per action' or 'Cost-per acquisition'. It is a performance based marketing model where advertisers pay affiliates a fixed amount for each purchase, app download, or simply for clicking an affiliate link. The opposite of this type of campaign would be things such as, CPC (cost per click), where payment is based on clicks or impressions.
Affiliates are making money with CPA marketing. It is considered a low-risk, high-ROI approach to affiliate marketing. Some affiliates write reviews or display a beer ad on their website, however the most effective method to promote products using this model is via social media marketing. Unlike other types of digital marketing tactics, where you have to pay to advertise your brand with no guarantee of the sale, CPA marketing only requires you to pay after the sale occurs.
The CPA network responsibility is to match affiliates and advertisers to influencers and endorse products they actually believe in while earning you a commission.
HOW IS THIS DONE?
The advertiser will provide the tracking links. When a customer clicks on the links, this completes a desired action, and the affiliate will earn a set commission. Other types of actions could include; making a purchase, reaching a specific game level, downloading an app, filling out a form (lead generation), or signing up for a free trial. Affiliates can earn money selling products and are rewarded for specific actions, making the payment more straightforward than any other payment model.
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