Do you ever wonder how these affiliate marketing managers earn vast amounts of money without even having a website or business? In this article below, you will learn everything you need to know about affiliates, specifically CPA marketing.
How CPA marketing is a profitable revenue stream for many digital marketers? What are the best CPA marketing networks for 2022? Let’s dive in to know your answers.
What is CPA Marketing?
CPA stands for Cost Per Action. It is a performance-based affiliate marketing model. In this model, you, as a publisher, get paid for driving traffic and actions that the user takes.
These actions are, for example, filling out a form, sign-up, requesting a quote, product sales, or anything else that results in a conversion.
This is all from the perspective of CPA networks. Now let’s discuss how different CPA offers can be categorized:
- PPI or CPI: They stand for Pay Per Install or Cost Per Install. A publisher is paid whenever a visitor installs a piece of software on their devices.
- CPL: CPL or Cost Per Lead generates revenue for you every time a user generates a lead by registration or a sign-up.
- CPS: Cost Per Sale is comparatively difficult from other offers; revenue is generated when visitors convert into sales.
The CPA networks inform their affiliate base about these offers. Furthermore, the network links the affiliate or publisher with the principal company with an offer.
The affiliate then picks the best offer according to his course of work and is paid for each completed action.
CPA marketing looks like an attractive business model for those just starting in online marketing and for established marketers alike.
It can offer you unlimited offers, fantastic ROI, and long-term residual income, pointing to a super high stream of revenues.
Do you want to join as an affiliate? There are thousands of networks working out there where you can register as an affiliate. But be aware of the spammy networks. These fraudulent networks might cause you to lose your money.
We have listed some best CPA marketing affiliate networks that you can join. But first, let’s cover the basics.
How Does CPA Work?
CPA marketing is not simple as it looks.
You have to make sure that you target the right customer demographics for the right offer. This is the most crucial point to keep in mind. Otherwise, all of your efforts will go in vain.
Another thing that you have to keep in mind always is Optimization!
So what exactly do we mean by optimization? What do you need to optimize as an affiliate marketer?
The answer is, everything! You have to optimize everything from ad copy to the landing page and design to SEO.
Do you get links from your friends and family that offer coupons or coins for signing up and referral? Well, CPA marketing work the same way.
Furthermore, once you become an affiliate with a network, you promote the advertiser’s product. And every time a visitor performs an action, you will receive a fixed commission from the advertiser for growing their business and bringing potential customers on board.
There is no limit that you can earn through the CPA marketing affiliate program. But for that, you have to stand out from the crowd and make your strategy attractive enough to make users complete the required action.
Key Players in CPA Marketing
Affiliate or Publisher
An affiliate is an essential player in the affiliate marketing program. Moreover, the publisher or influencer may be a brand, blogger, business, or individual who persuades people to perform a specific action like sign-up or purchasing the product.
Business or Advertiser
This party links with the network to achieve its objectives. Thus, the aim might be to increase traffic on their website, a long email list, boost sales, or any other conversion—the affiliate works to promote the brand’s product or help achieve their objectives.
CPA Networks are the intermediary parties that link the affiliate who promotes the brand’s products and services with the business that wants their products to be promoted. However, they earn a commission from both parties involved in an affiliate program.
Why CPA Marketing?
Affiliate marketing programs have many different models to offer. First of all, you need to know the difference between other pricing models which pay with a conversion.
We have listed down some of the most popular types of affiliate marketing models:
- CPA (cost per acquisition or cost per action)
- CPM (Cost per mile/thousand)
- CPL (cost per lead)
- CPC (cost per click)
- CPI (cost per install)
We are going to focus only on the CPA model in this blog. Since CPA is a cost model that comparatively gets higher payouts from advertisers because they bring quality traffic to the website.
Resultantly, this model is super attractive for many affiliates.
Benefits of Using CPA
As discussed above, CPA marketing is very profitable only if you are targeting the right demographics, as well as optimizing it the right way if you are working as an affiliate.
Connecting with the right affiliates or quality influencers should be your priority if you are a business.
Furthermore, compared to other eCommerce marketing channels, the cost per action has many benefits. A few of them are discussed below:
1. Low Risk
The risk is minimal because an affiliate is not paid until the referred visitor performs the expected action.
2. Easy to Set up
To set up a CPA marketing, you just need a website and a CPA network. It is pretty easy to launch.
Moreover, you can begin getting traffic from affiliate sites almost immediately by using your website and choosing a CPA offer.
3. High ROI
CPA marketing is generating big business globally, according to a report:
- In 2016, U.S. merchants spent $4.7 billion on affiliate marketing. Surprisingly, by 2020 U.S. affiliate marketing spend is expected to rise to $6.8 billion.
- Affiliate marketing worldwide spending is increasing at a 27% Compound Annual Growth Rate or CAGR.
- Over 80% of brands use affiliate marketing programs.
Affiliate marketing generates 16% of digital marketing revenue internationally. Also, it has a higher return on investment value.
Furthermore, the more traffic and conversion you drive to the website, the higher your commission will be.
4. Pay After the Sale
If you are a business and your affiliates do not bring a quality audience, you can diversify your affiliates and focus on those influencers who bring high-rate conversions.
Additionally, the most significant benefit is that you have to pay only after achieving your objectives or after you get the expected actions by visitors.
5. Expand Marketing Reach
You can communicate your brand’s message to a large audience faster and reliably with affiliate marketing.
Irrespective of the niche you are working in, you can always use CPA marketing. Whether fashion, textile, pharmaceuticals, pet food, service sector, etc., most business verticals use CPA marketing to promote their brand.
Top CPA Networks
Thousands of organizations are working as affiliate CPA networks internationally, but we have listed the top 5 networks below:
Founded in 2009, this polish company has been in the affiliate marketing business for a long time. It is a well-established player in the industry. Also, you can use CPS, CPA, CPI, and CPL in multiple niches here.
Being a senior member of the industry, FireAds has a vast community. The solid community network has over 220K affiliates, and it has paid over $10 million in commission.
MaxBounty is undeniably one of the best affiliate programs globally. It has over 20K affiliates on the platform.
Furthermore, you can get hundreds of offers from various advertisers and verticals as a publisher. MaxBounty is a trustworthy name for both the parties involved in affiliate marketing, i.e., affiliates and businesses.
MaxBounty does not entertain marketing newbies. Instead, they focus on experienced digital marketers.
Perform[cb] is a merge of multiple affiliate networks, previously working independently, i.e., ClickBooth, Adperio, and Ignite OPM. Since 2020 this affiliate network has been working under the name of Perform[cb].
They focus on both parties, i.e., providing high-quality, scalable traffic to partners to partners. Meanwhile, giving high-valued commissions to publishers.
Peerfly offers to pay the same or even more than any other affiliate marketing network. It was launched in 2009, and it has is a much smaller company and has significantly fewer communities than other big giants like FireAds.
Moreover, it was awarded as the second-best affiliate network in 2016, and it was among the top five networks in 2018.
Peerfly provides free training to newbies and pays commissions weekly, bi-weekly, or monthly.
CPALead is a fast-growing affiliate network. It provides a valuable return to their affiliates in terms of commission.
This platform possesses advanced geographical targeting, which is essential for an affiliate. Furthermore, CPALead promotes itself as a self-serve CPA and CPI platform.
In this blog above, we have discussed everything about CPA Marketing. It forms its meaning to its usage and benefits to top CPA networks. Therefore, this guide will help you whether you are a current or potential affiliate, merchant, or network.
Finally, if you have any questions regarding affiliate marketing or any other channel of Digital Marketing, feel free to contact us. iCreative has a team of professional digital marketing experts with 10+ years of industry experience.