What is CPA Marketing?
You who have often traveled the internet as a marketer or publisher often hear the term CPA.
Many say that the CPA marketing business model is one of the easiest and most profitable.
But what is CPA?
Basically, CPA or Cost per Action or Cost per Acquisition is a derivative of Affiliate Marketing.
The two terms are often swapped.
CPA marketing is one of the best, very popular ways to earn income online because of its large commissions.
This business model has become popular because it is flexible and without ties.
Let’s discuss more about the concept and its advantages compared to other business models.
The concept of CPA and Affiliate Marketing
The original definition is like this:
Affiliate marketing is a form of marketing where we market other people’s products and then we will be given a commission in the CPA model (cost per acquisition)
So affiliate marketing = the name of the industry, and CPA = the commission model.
But in practice, this is not the case.
Understanding the terms of affiliate marketing that we know today like this:
Affiliate Marketing is more often used for product sales (like the picture above), whereas CPA is more used for “actions” or actions.
Keep in mind all of this is a term that is still ambiguous. In addition, when entering the world of CPA you will also find several other derivative terms such as CPI, PPD, CPL, and the like.
The difference is the action in question earlier.
What are the actions?
- Fill out the registration form
- Registering email address
- Fill out the survey
- Provide credit card information
- Download file
- Subscribe to a service
- Install software / applications (often also called CPI – Cost per Install)
In CPA marketing, we will “seduce” others to take the actions above to certain websites / products / services.
Every time we succeed, we will get a commission.
Commissions that you get from CPAs range from $ 0.01 to $ 50 or even more.
The more difficult the conditions of completion, the higher the commission given. For example, e-mail registrations are easy-to-use commissions smaller (around $ 1- $ 2 for US people) than credit card information.
Why is the commission from the CPA high?
If you have ever been an ad publisher, you should be surprised why the commission is so far away even for trivial actions such as email registration.
This is the reason …
The story goes like this:
Suppose a product owner, Mr. A, wants to market his product using the CPA method.
So he registered his product to the CPA network which served as a broker so that the affiliate marketers could market Pak A.’s products.
CPA Network will get around 1-10% commission from successful sales.
To market this product, the affiliate marketers use advertising media. From here the affiliate marketer pays a commission for ad networks such as AdSense and ad publishers.
In this process, the affiliate marketer gets a commission of up to 50% of the product value.
The ad network and publisher get 1-10% of the value of the product. Not to mention the commission is divided by 2 between ad networks and publishers.
So from that if you count roughly the ad publisher only gets 5% of the value of the product while the affiliate marketer gets a commission of up to 50%.
This is what makes many ad publishers turn into CPA marketers.
The Skill You Need To Master
Before entering the next chapter, it helps you to know these basic requirements.
- Can speak English
At the time of writing, there is still no CPA network and Indonesian affiliate network that 100% guarantees you can earn regularly.
Not because they are suspicious.
But because the purchasing power of local people is still weak so it is very rare for people who are willing to spend money to buy goods online.
There are affiliate and CPA networks specifically for various countries, but you will be very difficult to offer products / services to people from your own country. For this reason, you will not be able to get a steady income.
Even so, maybe in the future it will be different.
So from that minimum for now if you want to build a business in the form of CPA marketing, then you must register on the international CPA network and market international products.
No need to worry, just basic English is enough.
Because it is “marketing”, then your job is to convince others to take action in the CPA.
For that you need copywriting skills.
Actually not only in CPA. Copywriting is a skill that you really need in every form of online marketing.
Copywriting is the way we channel ideas in writing (or non-written) so that other people want to act as we expect.
- Technical website
In marketing CPA, we need a web page where on that page we try to persuade them with copywriting skills.
So you need a minimum of basic HTML and CSS skills.
There are times when you don’t need that page. For example, if you market CPA with paid advertising media.
But in subsequent chapters in this series of guides you will realize why having a landing page or landing page will be far more effective.
- Willingness for learning and dedication
The latter is not a real “skill” but very influential on your success.
In CPA, you will deal with numbers that you have to process into action. Most people who don’t want to study will have difficulty here.
Then I will openly say this:
CPA marketing is not for those of you who don’t want to study.
In the process, you will find many small failures. 80% of CPA marketing is trial and error.
So if you don’t have dedication, you will immediately give up when you don’t get positive results.