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CPA (Cost-Per-Acquisition or Cost-Per-Action)
The principles CPA are the same as if you are selling your own
product.
The main difference is that you only supply a referrer link to the site of the
real seller.
Through this link, the seller tracks customers you send him and pays you
a commission when a sale occurs.
If you're an advertiser or manufacturer, this is the ideal program for you because there are no risks involved. You'll only pay the commission when a sale is final.
The price of one click depends on the advertising program and the amount of competition.
Most programs keep 30-40% of the advertiser's money.
If he is selling something really expensive like cars, he would
pay more money for quality traffic.
Let's say that an advertiser invests $1000 for attracting 1000 visitors.
Knowing that his Conversion Rate is about 0.5 percent, he can
expect about 5 sales.
Assuming that each sold car brings $1000 commission, the advertiser would make $5000 revenue!
But if the advertiser is selling something cheap like PC games, he would
never pay $1000 for 1000 visitors. His sales would not cover the
expenses.
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Be aware of your product's Conversion Rate before and during your
campaign. Find out how it ranges according to the source of traffic.
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Look for quality traffic, do not be impressed by sheer volume. Your product
will not sell unless you get in touch with its intended buyers.
- Target specific, profitable keywords. "Cheap Sports Gear" will convert better than "Sports Gear."
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Run statistics and be aware of where your traffic is coming from.
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Think about expanding your presence in the market. It is better to invest 1000 and make 1100 rather than spend 10 in order to get 110.
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