Internet jargon can throw a loop for newbies. The abbreviation in CPA networks means "cost per action". It applies to
affiliate marketing
.
Affiliate marketing programs pay affiliates for advertising their products or services, or for providing leads; however, there are basically four different ways that are commonly used.
The Compensation Methods of Affiliate Marketing Programs
CPS or Revenue Sharing
The most common method used is cost per sale, also known as revenue sharing. When a website visitor uses an affiliate link and buys something when they enter the site of the affiliate program, the affiliate makes a commission (a set fee or a percentage) on the sale. About 80% of affiliate programs use this method for compensating their affiliates for their efforts.
CPA
The next most commonly used is the cost per action compensation method. In an affiliate CPA network, commissions are not necessarily based on a sale. For instance, if a referred visitor fills out a form, becomes a member or requests a catalog, the referring affiliate will get some form of compensation.
CPC
Cost per click programs actually compensates the affiliate for each click that brings visitors to the website of the affiliate program. CPC used to be a commonly used compensation method; however, it lost appeal due click fraud activity. The cost per click is still commonly used
in relation to displaying ads
, but not many affiliate programs use this method.
CPM
Cost per mile is a form of compensation that pays for the impression of ads. After an ad gets a set number of impressions, the affiliate makes a set commission. This form of compensation is rarely used in affiliate programs.
In this day and age, most affiliate programs that you run across will compensate affiliates using the cost per sale method.
If you can find some cost per action networks, you are likely to make more money promoting such a program because website visitors are more likely to perform an action than to part with their money.
If you have loads of traffic, an affiliate program that pays by the click or by the impression are golden, but few of them exist.