Tag: Competitive Marketplace
CPA Marketing – Are You Curious?
by admin on Jul.06, 2009, under General
For several years now there has been this industry secret for the “big players”. It wasn’t really a secret, but while most people in Internet Marketing were busy promoting Clickbank and other affiliate programs, the big kahunas were playing on a whole different level – CPA. Today you have great training programs like the CPA Ninja School so that you can learn their techniques.
For those that don’t know, CPA is “Cost Per Action”. What it means is that you, as a promoter, get paid for the “actions” that your traffic takes. As an example, let’s say a cosmetic company wants to gauge the feedback to a new product line that they are thinking of introducing. They pay for each lead that you acquire for them, generally about $1.50 for a simple zip code and email lead – very straightforward. Your job is merely to promote and direct traffic to that site and then collect $1.50 for each person that opts in. This is a fairly standard promotion type. There are other more complicated and higher paying offers that may require a credit card for a free trial plus shipping and handling, or a multi-page registration form for insurance, for example.
Being a CPA marketer, you could really describe yourself as a traffic broker. You buy traffic on one end, send it to an offer page and get paid based on how well it converts. Sounds so simple, doesn’t it? Sometimes it is, but usually it’s not quite that easy. It is an very competitive marketplace and you’re up against some sophisticated marketers with deep pockets – some make as much as $100k net a day. While those huge numbers are impressive, what is more impressive is that many, many more people are making $500 to $1000 a day in CPA campaigns. When you try to get started, you’re going to be up against all of that competition – and it can be very challenging. The profits may seem high, but the costs are as well – don’t be surprised to spend $1000 to net $300. Sounds okay, right – spend $1000 and make back $1300 to net $300. Sure, you’d do it all day long if you could. (Discover insider CPA Ninja tactics.) But cash management and cash flow can become a big problem at first. For example, how much cash do you have at hand and for how long can you float it? Google charges you daily so you’ll be paying $1000 a day, but that $300 net (or $1300 gross) won’t be coming for perhaps 30 and sometimes even 60 days out. Those numbers may seem farfetched, but they are actually on the low end of the super-affiliate scale. So you have to go at the pace you can afford to in the beginning and ramp up as your cash flow improves.
The other thing to keep in mind, is that it is common that you might lose money on the deal for several days or more until you refine the campaign. You can make a very large amount of money in CPA marketing, but that doesn’t mean that it’s easy. As said earlier, CPA is not for the faint of heart and to take it seriously you should be prepared to commit to serious training as well – while potentially expensive, it will pay for itself many times over. So do yourself a favor and invest in the beginning so that you are prepared for the challenges that will come your way with CPA marketing. It may take you a while to get to $500 a day profits, but the effort will well be worth it. For more information see the CPA Ninja Review blog and get all your questions answered.
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