Cost Per Action or Cost Per Acquisition (CPA) is the top rung in the affiliate marketing ladder. Establishing a CPA network provides the potential to earn large amounts of affiliate dollars, provided that the traffic generation is large. Advertisers will pay CPA affiliates for each agreed upon action (filling out a form, purchases, etc). With a good website or idea, an individual or business can earn hundreds daily off of CPAs. For example, a business training website that advertises for cell phones, tax services, or ISPs would get paid each time an individual leaves their website to sign up for a service or make a purchase. For the savvy businessman or woman, the potential is limitless. Build a $200 website from a template, drive traffic through SEO, and watch the dollars roll in, right?
Yes and no. Yes, you have the potential for huge earnings depending upon your idea and the products or services you are marketing. With the right idea your commissions can literally soar. The Internet has made many a suburbanite a millionaire.
It has also bogged others down in the mire of SPAM, hidden costs, and dividends that don’t pay out as well as expected.
When entering into a CPA agreement be certain that you are careful about what you "opt in" for—you don’t want your inbox flooded with SPAM. Read the fine print. Be certain that you know exactly what you are getting paid for. Being paid for your visitors filling out a form is easier than being paid for them making a purchase. When agreeing upon your CPA requirements be certain that you can make money off of the deal. It is easier to get someone to sign up for a tax service, for example, than to get them to buy a new laptop. Everyone can use a tax service, most people already have a computer or they wouldn’t be on the Internet.
Lastly, think about what you as a consumer would purchase for yourself. What are you attracted to? What websites do you frequent? Are you more likely to purchase vitamins or tax services? Also, consider market saturation. Who is your competition? Can you truly make money off of this idea? CPAs can yield powerful results for both parties when handled correctly.
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