- Personal Finance
Make Money Marketing: Make Money With CPA Marketing
Google Chief Economist Explains the Adwords Bidding Process
With this article on marketing the internet, I will continue the quest into looking at different ways to make money online, my goal is to find the best opportunities for earning money online. One of the most promising method I've found and one that many marketers are pursuing vigorously, Is CPA marketing.
CPA or Cost Per Action marketing also known as PPA or Pay Per Action is according to Wikipedia; "an online advertising pricing model where the advertiser pays for each specific action, ( purchase, a form submission, and so on) linked to advertisement."
In other words, 'offers'; the user fills out a form or downloads software from an advertiser, the forms can range from a single e-mail submission to more extended forms, each action a lead. In return for each lead that is generated, the advertiser will pay a precise quantity of money to the publisher.
CPA Marketing Involves:
- Publishers (Affiliates)
- CPA Networks, host CPA offers from their advertisers, then have their publishers send traffic to the offer, they work as mediators or middlemen, taking a percentage of the lead value.
CPA marketing may sound new to those of us who are relatively new to internet marketing. However; this way of making money online has been around for some time. CPA marketing has gained in popularity recently and is proving to be a good way to make money online among the mainstream internet marketers.
Internet marketers with the knowledge and understanding of the ins and outs of this way of making money online are turning CPA marketing into very lucrative profit generating businesses. The proof is of free products that are offered online in return for e-mail addresses and other personal details. CPA is an attractive option because the user does not necessarily need to buy a product, only to complete the personal information, once this is done, the affiliate earns his lead commission.
How it Works
CPA is said to be a much easier version of affiliate marketing. With CPA, the amount of money paid for each lead varies; but can be in the region of $1 to $6 per lead depending on the offer.
In the more highly competitive markets such as Insurance, some life cover offers will pay around $22 per lead. When there is a purchase made, like affiliate marketing, the earnings or profit can be considerable more.
With CPA marketing, a lead can also be free product trial, someone who is referred to an advertiser and has signed up to a subscription.
To get started with CPA the affiliate or publisher must first sigh up with a CPA affiliate network, the best CPA network should be chosen, the network will act as a mediator between the advertiser and publisher.
To be able to make money, the publisher needs a reliable low-risk network. There are several affiliate networks that can be used for this purpose, sites like Offervault.com, are popular with a comprehensive list of CPA network to join, some of the better ones includes:-
- Commission Junction
Choosing an Offer
The next step would be to get affiliate offers, and to devise a good way to drive or direct good quality targeted traffic to the offers that will yield maximum results.
Offers that have a high demand are chosen. The possible demand can be tested by looking at search volumes for the most relevant keywords relating to a particular offer.
Google's free keyword tool at http://adwords.google.com/select/KeywordToolExternal can be used. The name of the product to be promoted is typed in to see how many people are searching for the targeted keyword every month. Google Insights for gauging demand is also an excellent tool that is found at Google Insight. However; Google is changing its "Keyword Tool and Traffic Estimator to be replaced with keyword planner.
Sites like shareasale.com, Commission junction.com or Clickbank, are used for the highest popularity and gravity offers and a good amount of historical traffic, check out traffic detail at compete.com
This is important; because, to make money the publisher must first select the right offers that will bring in the most traffic or search volume for its most relevant keywords.
Once the CPA offers have been selected, it can be tested by driving traffic to it to test how profitable and effective the marketing technique and the offer is going to be. This can be done without spending too much of the advertising budget.
Once the first successful campaign has been accomplished, the marketer can begin the next, now that he has gained the valuable knowledge and skill required to make CPA pay.
Driving Traffic to Your Offer
There are several different ways of getting traffic; these are only a few that are widely used to generate traffic to CPA offers
- Free Traffic. This is natural search traffic when the major search engines index a web page. This method has become very competitive with recent changes made by large search engines like Google. However, it is still possible to get free traffic by using major keywords, by making good use of, back-linking, forum, media and article writing traffic. This involves diligence and hard work but can yield results.
- Paid Traffic. An example of paid traffic is PPV or pay-Per-View. The advertisement is displayed when someone either visit a website that is targeted in a campaign or type a keyword that is targeted into their browser bar. This is a popular and powerful means of getting traffic with CPA marketers; cost can start for as little as .0150 cents per view. Media buying is another example of paid traffic, it refers to the buying of advertising space in bulk for a large volume of ads campaigns, but this can be expensive.
- Recycled Traffic. An example of recycled traffic is the capturing of e-mail addresses from visitors who visits the affiliate's web site, the e-mail traffic is recycled through a follow-up system that is set up to direct visitors back to the site through e-mail messages. An excellent way to build free traffic, with the use of popup windows.
- Free Viral Traffic. Involves giving away something for free, this can be free ebooks, free reports, software programs, electronic greetings cards or free email. This type of marketing programs allows the marketer to get a great number of leads and traffic, especially if the products or service is thought to be of high value. Word of mouth should not be underestimated here, friends and family can get the word out, people are much more likely to visit a site when it has been recommended by a friend or family member.
- Social networking sites like MySpace and YouTube are good places to get free viral traffic; this will involve buying links or channels and then adding a link to the offer in the video description. These sites are powerful because their contents are built by the community where users spread the word. Marketers can create their own small MySpace community where targeted CPA offers can benefit from the free traffic to generate more commissions.
- Social Media. Can be used to create a Facebook page, with a snappy, catchy title that is based on a product or solution to a problem that can be linked to offers for similar products. Sites like HubPages.com are great ways to relate content to offers. Publishers can make good use of Twitter, create some Squidoo lenses use MySpace.com, Digg.com, Wordpress.com and Delicious.com to name but a few.
- Use Facebook ads.
- Create Hubs or Blogs reviewing offers in the same niche and link with offers from them.
- Banner advertising can be used to get traffic to offers, this is known as ‘Media Buying’ as mentioned before, and can be done in some ways, including through ad brokers like BuySellAds. These sites allow marketers to search for sites that are selling advertising space depending on, the price, size of ads, related keywords and the number of impressions. Media Buying, however, does come with a certain element of risks, and traditionally, this can cost thousands up front, and needs time before it becomes profitable. There are smaller sites for media buy that is cheaper and can still generate a good profit. An ad impression is every time someone visits the ad page. With BuySellAds impressions can be more than 5,000,000 per month. This is different from PPC with Google Adwords, in that payment is for the amount of time the ad is on the site and not how often it has been clicked, allowing good ads that converts well, and targeted to the site audience, to maximize the number of clickthroughs the marketer or publisher gets.
- Banner space from forum owners can be acquired cheaply. Web sites such as Big-Board.com lists some of the busiest forums on the internet, where site related to a particular niche can be found.
- Publishers can contact appropriate niche sites to request information for the purchasing of banner advertising on their site. This may require some time and patient since only approximately 10 - 15% of the small site owners will respond.
- Find the Right Ads. The best sites to find, are those that gives the most impressions for the money
- Choose ads with the dimension 300 x 250, this size have been proven to achieve the best clickthrough rate.
- Check out who visits the sites, make sure you are getting the right type of traffic that will prove to be profitable for your niche. Use a site like Alexa.com and Quantcast.com. Get a rough estimate of the daily revenue the site is experiencing, by using Cubestat.com.
This article does not by any means cover the full scope of CPA marketing, what it does, however, is give a rough idea of what is out there on the internet to make money online.
For more information on the subject, I strongly recommend that the reader does his or her own research. Like every other money making method online, CPA marketing also has its downside. The CPA industry is still poorly regulated, and where there is money to be made, there are unscrupulous and unethical people who are prepared to cheat, so for us newbies, it is vital to get all the facts before venturing into these waters.