Although there are countless people making big profits from promoting CPA offers, it’s possible that you have never even heard of the term. If you have ever been surfing the web, and come across an online form that asked for a small bit of information like your email or your zip code in exchange for something free, then there’s a good chance that was a CPA (cost per action) offer.
The easiest way to explain how and why CPA offers exist is to break it down into the three entities that exist in the CPA marketing loop:
The advertisers are companies who are launching products and programs in order to get information from their target market.
For instance, an advertiser like Apple might offer the chance to win a nano iPod in exchange for the targeted traffic to enter the zip code. This way, they can get an idea of how many people in specific zip codes care about their specific products.
The Affiliates (Promoters)
You may have seen an ad before that offered the chance to win an Apple iPod in exchange for your zip code, but you are completely unaware of how you ended up there.
The people who led you their are most likely affiliates of a CPA network that chose to promote that offer in order to make a profit from it. For example, if you were to sign up as an affiliate for the free iPod offer, you might get $2 for every valid zip code that is entered through the offer you set up using your affiliate link.
The CPA (cost per action) networks act as the middlemen between the advertisers and the affiliates. The networks will find affiliates to promote the advertiser’s offer, and will even sometimes design their campaign banners and other promotion material for them. The CPA network also handles the payouts to the affiliates so the advertisers do not have to do that themselves. The networks do this for a few, of course.
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