It’s true, whatever positive things you have heard about CPA marketing. It’s lucrative and could be a great source of passive income. But you won’t experience this automatically. You will only know when you choose the right CPA offers.
To choose the right CPA, a myriad of factors come into play. There are the audience vibe check, offers versus conversion potential, the authority of the CPA network, alternative offer options, and aggregates, among others.
If you’re a newbie or pro trying to max out your income potential. We discuss each factor in detail and provide enough info to empower you with the insights you need to make wise decisions in your affiliate marketing career.
How Does CPA Marketing Work?
In case you do not know, CPA is short for Cost-Per-Action Marketing. Affiliates get rewarded for specific actions performed by the traffic they generated. In other words, the traffic, reach, or impression isn’t the basis of reward. Specific actions must be performed by leads from the promotional activity for the affiliate to be rewarded.
CPA marketing requires effective tracking. Often, a CPA network serves as the middleman between advertisers (companies offering the program) and affiliates. These CPA networks provide a range of services, including tracking and attribution, payment management, compliance and fraud prevention, marketing and promotional tools, affiliate recruitment and vetting, offer aggregation and matching, as well as support and resources for both affiliates and advertisers.
When the advertiser takes out the CPA network, it is considered a direct partnership between advertisers and affiliates. One of the advantages of CPA networks, aside from their tools, is that they offer multiple offers from various advertisers.
What’s a good CPA offer look like?
A CPA offer specifies the action to be performed and the commissions associated with each action. Commissions could be based on the cost per lead, sale, install, sign-up, registration, or a mix of these.
A good CPA offer typically:
- Comes from a credible advertiser or a reputable CPA network.
- The product or service delivers on its promise.
- The commission versus the conversion rate is a healthy compromise.
- The CPA network provides support and the necessary tools for effective tracking.
How do you determine what a good CPA offer is?
To determine what a good CPA offers, you must understand the nuances affecting your choice of a good offer. They are:
CPA network vs direct partnerships
First, is it an offer for a direct partnership or from a CPA network? Direct partnerships involve the advertiser directly interfacing with affiliates. CPA networks, on the other hand, act as middlemen between advertisers and affiliates.
Even better, CPA networks typically have multiple offers from various advertisers within a niche or across numerous niches. They also assume the responsibilities of payment, tracking, security, and compliance, among other key functions.
- Deciding factor: If it’s a CPA network, do they have a track record of transparency and efficient service? Do they offer the necessary support and tools for tracking? CPA networks like OFFER.ONE provide compliance, tracking, payment management, and creatives for affiliates who need promotional materials. They also have offers from the best advertisers in the web3 niche.
If it’s a direct partnership, do your due diligence to ensure the advertiser delivers on its promise, and what support tools and tracking system are in place to guarantee commensurate compensation and security.
Critically dissect the offer
When you read the offer terms and agreement, you must not be quick to consider only the compensation rate. Consider the conversion rate. The conversion rate refers to the likelihood that people will take the desired action. Remember, your commission is hinged on every action performed.
So if an affiliate offer says you get rewarded $100 for every sign-up for a new airline app. The other offers $10 for every discounted flight ticket booked through your link. Which sounds like a good offer?
The first option appears to be a good offer due to its substantial compensation. But what’s the likelihood that, despite your investment in paid ads, it will yield much? Very low. On the other hand, the latter is easier. With the correct targeting, you can make $500+ if you get more than 50 actions.
- Deciding factor: compare the conversion rate and compensation rate to determine if it’s a profitable venture.
Consider niches
Before you consider the offer, assess the feasibility of the conversion. You must first consider your niche. Why choose a niche? Your audience. A niche is the industry’s products/services where you predominantly want to promote affiliate offers.
- Deciding factor: Before you choose a niche. First, consider your expertise, and then identify niches that offer numerous opportunities (feasible conversions and excellent compensation).
Consider your audience
Next, you need to choose a niche because of your audience. It’s going to be hard to sell to an audience you do not predominantly attract, cater to their needs, and wouldn’t find the helpful offer.
For example, if you promote automobile products, you predominantly attract women interested in skin care products. It’s a mismatch!
The audience you predominantly attract, who would naturally be interested in the offer, increases your conversion. It is a game changer!
Additionally, even new leads want to see that you have been sharing valuable content in that niche to establish trust in your affiliate promotions.
- Deciding factor: When you come across a CPA offer. You must first consider your niche and target audience.
Consider other affiliates
After you have done your due diligence vetting CPA networks or direct partnerships, criticizing the offer, and considering the niche and audience you attract. You should review the performance of the offer and the number of affiliates promoting it.
Why? The more affiliates promoting it versus the available market for the offer. The lesser the conversion potential. Let’s assume there are only 1 million active customers in a niche, and 500k affiliates are already promoting what’s a great offer. Irrespective of your paid ads, the competition is already steep.
- Deciding factor: choose a great offer that isn’t overcrowded with other affiliates.
Conclusion
CPA networks have the advantage of bringing multiple advertisers closer to you. Offer aggregators like OfferVault, Affbank, and Affplus are a great place to find a variety of CPA offers and compare their terms, payouts, and performance.
When you do find a good CPA offer, remember that it typically comes from an advertiser or a CPA network with predominantly positive reviews and a track record. The product or service delivers on its promise. The commission versus the conversion rate is a healthy compromise. The offer aligns perfectly with your niche and audience, it would be easy peasy to get “leads” to convert. Lastly, it’s not overcrowded with affiliates.
Goodluck
We’re rooting for you!
