4 Important CPA Facts That CPA Networks Might Not Tell You
CPA networks won’t tell you everything you need to know about what you are getting yourself into. These four facts are usually left as grey areas, but now you’ll know about them.
1. A marketer is on the third level of a four-level chain.
Although marketers (the website and blog owners) transact with CPA networks directly, they are not the only two parties involved with CPA marketing for business. This is a four-level chain that starts with advertisers looking for CPA networks that can promote their businesses. The networks look for marketers who have websites with high traffic belonging to the niches of the advertisers. These marketers attract visitors who do the actions required by advertisers before they pay the networks that pay the marketers.
Marketers cannot coordinate with advertisers directly, but if they do, the deal will be some kind of sponsorship or direct affiliate marketing instead. The terms in this agreement are more flexible, but the websites involved should be really special (in terms of content, traffic, and profit).
2. Rates vary even for the same kind of action.
Advertisers do not always pay the same, although many CPA networks nowadays standardize their charges regardless of the advertisers they have. Nonetheless, website owners should not be surprised if they receive different rates for the same kind of action because there might be two different advertisers involved.
Advertisers weigh the leads they get, so they don’t always give the same value for all. Direct purchases also have different values, so it is just natural that they pay more for bigger purchases. It is also a fact that some advertisers are more successful than the others, so smaller advertisers might be able to afford only a lower threshold.
3. Fraudulence exists in CPA Networks marketing.
There are times when signing up with a CPA network and successfully giving them the actions they demand all end up for nothing. Fraudulent CPA networks exist, but there are also fraudulent advertisers that victimize networks and their members in effect. Thus, a clean CPA network with inefficient screening process for their advertisers is still a bad choice for marketers.
Fraudulent advertisers also look for loopholes by choosing a pay per lead (PPL) system. This is a system where the CPA network is required to send the leads first before the advertiser sends the payment. If the exchange of leads and payments is not done with the assurance of a trustworthy escrow agent, the leads might not be paid at all.
On the side of the advertisers, some bogus CPA networks send fraudulent leads that are either made up or not updated.
4. Marketers have the option to sign up for CPL or CPA.
Cost per lead (CPL) marketing is almost always a part of cost per action (CPA) marketing. Many marketing specialists even use these two terms interchangeably. Nonetheless, there is a distinct difference the two.
CPL marketing usually looks for leads as result so that advertisers can acquire an avenue for multiple touch points with their customers. These leads are used for free newsletter subscriptions, free memberships to exclusive communities, and other free digital materials, like eBooks and audio files.
CPA marketing, on the other hand, usually looks for a complete sale as result. A closed deal is required here.