What is CPA and is it Worth the Buzz or not?

But what is CPA?

CPA stands for Cost Per Action and it’s not a new concept, just a new name and being hyped up by a lot of marketers as a better alternative to AdSense. It used to go by the name of Pay Per Lead, which probably helps explain the concept better – companies are prepared to pay, sometimes very large amounts, you to generate leads from them. Most offers that you will be able to promote will ask visitors for some personal information which ranges from a ZIP code to full contact details. Other offers will try to get visitors to sign up to websites and finally you have offers that let the user order free samples if they pay for postage and packaging.

The amount you can earn from CPA offers range from $1 to as much as $50, but you may be wondering where the companies get the money from to pay you for promoting what are ‘free’ offers. A company will look at your lead as a long term prospect, the visitor was interested and motivated enough to provide some (or a lot of) personal information and the company can now follow up on this lead to try and convert them in to a paying customer. Sometimes the company will sell the details to other agencies, so if this makes you fee uneasy you should definitely find out what the company does with the personal details before promoting it.

Evidently this method works because even the biggest companies and largest Internet companies in the world are using it to generate leads. They are basically leveraging the power of the Internet to become their salesman.

With that said, is CPA worth the buzz and hype that it has been generating? Probably not, it’s no different to the AdSense hype from a few years ago when the likes of Joel Comm revealed that he was making $15,000 or more each month and soon after waves of AdSense ‘how to’ guides followed. Nowadays, AdSense has become the easiest way to make money online, but CPA is new (or at least the term is) and is therefore attracting the attention of thousands of people.

As with most ways of making money online, CPA is relatively straight forward, put offers on your website or promote them via some PPC ad network (like AdWords) and make money. It differs because it is much more time intensive and requires a lot more testing and optimizing than other money making methods. Infact, newbie are likely to find that they make more money with AdSense than CPA offers.

So in conclusion, CPA offers can be very lucrative, more so than AdSense or promoting products as an affiliate, but it’s probably not worth all the hype that surrounds it because it’s not going to be for everyone.

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