Cost Per Action or CPA is the highest paying online advertising that works today, with commission ranging from $1-$25 for every sign-up or a 10 percent payment for an actual product purchase, what can you lose? And if you are a blog owner, this is an easy and lucrative way of monetizing from your efforts. However, negative reactions on online advertising which includes cost per action or CPA strategies had already been proliferating even before its birth. Which poses the question, is CPA really good for the customers, the affiliate, and the merchant?
A cost per action advertising works with at least three parties involved; the merchant site, the affiliate site, and the customer. For example, the merchant site is the Amazon Associates, the affiliate site is your blog site, and the customer is one of your readers. Given the three parties involved, here are the following benefits each party will gain from cost per action or CPA:
1. As a merchant – Merchants have minimal risks in cost per action or CPA advertising. Why? If you are a merchant, you only pay affiliate sites on a commission basis for every sign-up, purchase, or any service that can guarantee returns on investment. For example, the merchant is Amazon Associates and the affiliate site is your blog or website. Amazon Associates will pay only pay you for every purchase a visitor in your site makes. Amazon pays a 10 percent commission for every customer’s purchase which means for every visitor that makes a purchase; you will gain a 10 percent commission. But if a visitor in your site only makes clicks and not purchase, Amazon Associates as a merchant will not pay you anything.
2. As an affiliate – CPA is very beneficial and practical for an online merchant but is it true that all gains only go to the merchant? No. As an affiliate, it is true that you will gain nothing without a purchase or any beneficial return on investment from the part of the merchant. That is why, to be successful in monetizing your blog or site, you must first have wide readership and worth reading contents. You must also make sure that your blog and contents are search engine visible to attract more visitors and gain followers. And of course, your ads must be closely related to your contents and site’s purpose. As an affiliate, you can gain as much as $25 for every sign-up. These means a lot of you have wide readership and most of your readers are interested in the sign-up ad. With the case of Amazon Associate, Amazon usually places advertisements which are only related to blog content. So, if you are a blog owner, the biggest challenge in monetizing your blog is readership and your credibility as a blogger.
3. As a customer – Customers nowadays, are usually aware of online advertising scams. The good thing about cost per action advertising is that as a customer, you do not risk any penny without your consent. More often, you only follow blogs which are helpful and interesting to you. In the case of Amazon Associates, since they only places ads which are related to the blog site and it’s contents, in a way, the cost per action or CPA advertisement becomes helpful to you because you can be able to locate products related to your interests.