Rebate program. Consumer benefit, selling discount, customer reward. Online store, e shopping, internet shop. Money savings, cumulative bonuses. Vector isolated concept metaphor illustration

CPA stands for “cost per action” and it is a pricing model used in online advertising and affiliate marketing. Under a CPA model, an advertiser only pays when a specific action is taken by the user, such as filling out a form, making a purchase, or downloading an app.

For example, an advertiser may pay a certain amount for each email address that is collected from a form on their website. In the case of affiliate marketing, a merchant may offer an affiliate a CPA deal, where the affiliate is paid a certain amount for each sale made, free trial sign-up, or a lead generated. This can be more beneficial for the advertiser than paying for advertising that may not convert into sales, and for the affiliate because it allows them to earn money for actions taken by the users they refer.

Example :

An example of CPA in affiliate marketing would be a company called “Tax Preparation Inc” that offers a software service that simplifies the tax preparation process. They decide to set up an affiliate program and partner with various financial bloggers and influencers. These bloggers and influencers promote Tax Preparation Inc.’s service on their websites and social media platforms by sharing unique links or codes that are specific to them. When their followers click on these links and sign up for the service, the blogger or influencer earns a commission on the sign-up. This benefits Tax Preparation Inc. by driving more sign-ups to their service and it benefits the bloggers and influencers by giving them a way to earn money through their own efforts. In this case, the CPA for the affiliate would be $5 for each sign-up.

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