CPA Marketing Payment Model

The CPA affiliate marketing method is advantageous for businesses because they don’t pay unless a successful conversion is made.

The payouts differ based on competition and average commission rates in each vertical.

For example, headphone manufacturer Skullcandy’s successful affiliate program offers a 5% commission on sales based on a competitive electronics category.

Kelty, the outdoor camping gear company, provides affiliates up to 10% on a tiered commission structure. It’s all based on the competition within your vertical.

The cost per action formula is a very low-risk method for advertisers, as they only pay for the desired actions after they occur; unlike paid traffic, for example, where you just pay to get people on your site through ads.

The cost per action for an advertiser can be determined by dividing the total cost of the marketing campaign by the number of successful actions taken.

CPA Marketing Payment Model

Let’s look at our pretend company, Easy Cooking, as an example.

If Easy Cooking spends $1,000 on a marketing campaign and gains 25 successful conversions on a signup form for a recipe eBook, the cost per action is $40.

While the cost per action varies by industry, Google AdWords reports the average cost per action across all industries is $48.96.

    **The automotive industry has the lowest CPA at $33.52.
    **Technology has the highest CPA at $133.52.

The top 10 percent of advertisers boast CPAs up to five times better than the average.😑😑😑😑😑😑

Comments

  1. Ann LucasOctober 4, 2021 at 3:43 AM

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