Promoting CPA offers is one of the most exciting and profitable ways to make money online. The offers are so varied and spread across so many different markets it’s hard to know where to begin. But whether you’re the type who likes to spend time creating elaborate, multi-level campaigns or you just like to see how many campaigns you can start in an afternoon, rest assured, there’s money in CPA marketing. And there’s also a lot of risk. But that’s why so many Internet marketers like it!
CPA stands for Cost Per Action and it’s referring to the money you earn, not money that you have to pay to participate. Each time you drive traffic to a CPA offer and they complete a specified action, the advertiser pays you a referral fee. The action may be something as simple as just clicking on a banner or submitting an email address but each time someone follows your link and performs the necessary task, you make money.
Now, in the beginning it’s not as easy as it sounds. Most CPA marketers use paid advertising to drive people to their link. That’s what a lot of those Google Adsense ads are that you see on every blog on the Web. A CPA marketer is paying for those ads to drive traffic to a page that includes his link. And each time someone clicks on his ad, it costs him money.
Learning to create the type of ads that drive targeted traffic to the CPA offer is the hardest part about this type of marketing. Since it costs you money to send people to the offer, you want to make sure you’re sending people who are likely to complete the action when they see it, because that’s the only way you’ll make money.
The ads that you run are keyword based and to get them to show on the right blogs and websites you have to bid for placement opportunities, again, using keywords. So it’s important that you know how to do extensive keyword research so you’re not wasting your ad money.
Here are some questions that will make this all a little clearer:
How much will you have to spend for keywords?: You’re going to have to pay for keyword based advertising to drive traffic to the advertiser’s sales page and each time someone clicks on your ad it will cost you a certain amount of money, based on the keywords you’re targeting. Keywords with lower competition will be less expensive, but they’ll also be less relevant. Keywords that are more relevant, which attract better targeted traffic, will be more expensive. Your goal is to attract targeted traffic that will be more likely to complete the required action and spend less money on clicks than you make in referral fees.
What’s the conversion rate on the advertiser’s sales page?: This is another key part of your decision. Most CPA networks will give you at least some idea of how well the advertiser’s offer is converting. If it’s a crappy offer that no one is interested in, it doesn’t matter how much you spend on traffic, you’re not going to see any profit. On the other hand, it may be a lower conversion rate because the advertiser is asking for a larger action – instead of just clicking a link the reader has to submit his email address or take a survey or maybe even buy something.
What is the required action?: This should also be a part of your decision making process. What is the advertising asking for? It’s very easy to get people to just click on a link and view a package. But as the actions become more involved, it becomes harder to get people to follow through. For example, nearly everyone will click a link, but it’s harder to get them to hand over their email address. And harder still to get them to buy something.
How much do you earn per action?: Generally, the more difficult the task, the more the advertisers pays for the conversion. Targeting your traffic is crucial, though. Let’s say you’re marketing a CPA offer that pays you $1 every time a visitor completes the action. If it cost you 20 cents a click to send a visitor to the page and only 5 out of 100 people actually complete the action, you’ve just spent $20 and you’ve only made $5.
Do you know how to target traffic?: As you can see, the more you know about keywords and targeting the right kind of traffic, the more successful you’ll be.
Don’t be afraid, though. It’s not rocket science and all it really takes to make money online marketing CPA offers is a love of adventure and a little bit of practice.