CPA Marketing – What’s It All About?
For several years now there has been this industry secret for the “big players”. It wasn’t really a secret, but while most people in Internet Marketing were busy promoting Clickbank and other affiliate programs, the big kahunas were playing on a whole different level – CPA. Today you have great training programs like the CPA Ninja School so that you can learn their techniques.
CPA stands for Cost Per Action. What it means is that you, as a promoter, get paid for the “actions” that your traffic takes. As an example, let’s say a cosmetic company wants to gauge the feedback to a new product line that they are thinking of introducing. They pay for each lead that you acquire for them, generally about $1.50 for a simple zip code and email lead – very straightforward. The only responsibility you have is to drive traffic to their lead capture page at your own expense. This is a fairly standard promotion type. Others might pay as much as $37 for an optin (though it might require much more detail or that the person pay for shipping and handling on a free trial) and some long form or multi-page registrations (such as you would fill out for car insurance or a home mortgage) may pay even more.
So, in essence, as a CPA marketer you are really a traffic broker. You buy traffic on one end, send it to an offer page and get paid based on how well it converts. Sounds so simple, doesn’t it? Well, it can be, but it generally isn’t. It is an very competitive marketplace and you’re up against some sophisticated marketers with deep pockets – some make as much as $100k net a day. While those huge numbers are impressive, what is more impressive is that many, many more people are making $500 to $1000 a day in CPA campaigns. In the beginning you’ve got a lot of hurdles to overcome dealing with all that competition as well as the learning curve. What many don’t tell you is that to make $300 on a campaign, many times they are spending $1000. I know that doesn’t sound like such a bad deal – and it’s not. Sure, you’d do it all day long if you could. (Discover insider CPA Ninja tactics.) But the issues are complex. For example, how much cash do you have at hand and for how long can you float it? If you run up a $1000 a day on Google PPC just to make $300 and it takes you 30 days before you collect your payouts, you would have run up $30,000 in Google PPC before you ever see that $9,000 net. Those numbers may seem farfetched, but they are actually on the low end of the super-affiliate scale. So, it becomes a process that you “grow” into at a pace that you can afford.
Furthermore, they may have had to lose money on that campaign for a week or two before getting it profitable and refined enough to make that $300 a day. You can make a very large amount of money in CPA marketing, but that doesn’t mean that it’s easy. If you’re going to take this seriously, then you need to seriously commit to a training program that can teach you the ins and outs and save you the learning curve – that learning curve can be several times the cost of a good training course. The wise choice is to invest upfront in good training so that you don’t make costly mistakes along the way. It may take you a while to get to $500 a day profits, but the effort will well be worth it. For more information see the CPA Ninja Review blog and get all your questions answered.
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