CPA

Cost per action (CPA) is one of the online payment models by which advertisers pay for every action (sale or registration) completed as a result of a visitor clicking on their advertisement. Prices typically range from $1 to $25 or if a percentage of a sale 5% to 25%. This is an ideal method of payment for advertisers who want to guarantee only the number of customers generated as a result of an advertisement. CPA offers an opportunity to control ROI.

CPA advertising differs greatly from traditional forms of online advertising such as the Cost-Per-Impression (CPM) or Cost-Per-Click (CPC) models. It is strictly performance based advertising; instead of the advertiser having to pay the publisher for every ad impression or for every click-through to a website and hoping for a conversion to a lead or a sale, the advertiser gets the traffic for free and only pays for the results.

As one of CPA types, free-trial offers, are so prevalent among both advertisers and the sellers who promote them. Here’s the reason: free trial offers are often totally free to the customer, except for a small cost (as little as $1.95 or so) for shipping and handling. The customer gets a product they are interested in for an unbelievably low price, and the advertiser gets a priceless lead. Though the offer is free, companies pay large commissions, because free trial offers are forced continuity programs – by accepting it, the customer consents to pay for more product when the free trial is up, usually through a monthly auto-ship program. You just deliver the lead – the advertiser assumes the task of keeping that customer. So you get a great commission on an offer that is straightforward to convert, and all you do is get the customer to your landing page.

An even better solution than simply setting a preferred CPA is to adhere to best practices so that you:

* Identify Specific, Relevant Keywords through Research
* Improve Quality Score
* Optimize Ad Text