A business will grow much bigger and faster by promoting and selling products online. However, it is hard to target the right people and then turn them into customers. CPA marketing is going to help a business get more customers much more easily.
CPA or cost-per-action marketing is like affiliate marketing. Businesses are trying to use this marketing to scale their efforts and finally reach a much wider audience. This marketing involves partnering with publishers, bloggers, or influencers.
What Is the Cost Per Action Marketing
Just like affiliate marketing, CPA marketing requires businesses to partner with someone else who wants to promote the products. Later, those who partner with a business are going to get a commission fee when customers buy the product through the efforts of the affiliate marketing program.
For example, the partner may display a banner ad, write a review, or even post the video on their website or social media to promote the products of your business. However, the business that performs this cost-per-action marketing will pay after the customers purchase the products.
Does it still work if the customers want to get a refund? If the customers want to get a refund, then the business can recoup the payouts that have been made to the partner. This means the partner must make sure that the customers will pay and buy the products without requesting any refund.
Categories of Cost-Per-Action Marketing
Cost-per-action marketing comes in three different categories, they are pay per sale, pay-per-action, and recurring payments. As a business owner, you need to understand the three different categories before choosing the right category for this marketing method.
1. Pay per Sale
The first type of the cost per action marketing is the pay per sale marketing. As an advertiser, you need to pay the publisher a percentage of the sale price of each product. You should pay after the customer buys any item as a result of the marketing strategies performed by the affiliate.
In this CPA marketing, the advertiser of the business owner should pay the commission to the affiliate if the customer makes payment without asking for a refund.
2. Pay per Action
Unlike the first category of the cost per action marketing, this pay-per-action marketing doesn’t have the same goal. The advertiser is going to pay a commission to the publisher or partner when the customers take a special action, like visiting the business’s website, signing up, or subscribing to the newsletters.
Even though the customers don’t make any purchases, if the customers perform an action the advertiser expected, the publisher will still get the commission.
3. Recurring Payments
How to learn the recurring payments in cost-per-action marketing? Most affiliate programs will only pay the one-time commission only when the customers purchase the products. But the recurring payment system is a special model with a different payment method.
This affiliate marketing model requires a business or advertiser to pay a commission to the publisher every time the customers make a repeat purchase. Even though the publisher doesn’t get any new customers, if the loyal customer makes more purchases, the publisher will get more commission.
Terms in The CPA marketing
Before leveraging the cost-per-action marketing program, every business owner needs to know the marketing terminology first. Below are some words you need to learn before adopting the marketing program for your business.
1. Affiliate Agreement
A specific contract contains the term of the affiliate relationship between a business and its partner. This agreement will specify the responsibilities of both parties and the commission that the published will get if the customers make purchases.
2. Commission
A specific percentage of a product’s sale price that a business will pay to its partner or affiliate when the partner can make customers buy something from a business. The commission can also be paid when the customers do something expected by the business.
3. Hitech Terminal 70
A machine that allows you to send text messages to anyone between 300 meters and 2 km around your business. This machine is going to inform people around you that you are looking for partners for the special affiliate marketing program.
CPA marketing is a modern marketing program that requires a specific machine like the Hitech Terminal 70. Find more details about this product here.