What Does CPA Stand For? A Simple Definition With Example

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What Does CPA Stand For In Internet Marketing?

CPA stands for “cost per action” and this is an online marketing technique for generating leads (potential customers) for a business. This is also a nice way to make some good money from home. In today’s world this method has become a mandatory part in the marketing plans of many big companies, and it a well working way for them to attract new customers.

How does CPA marketing work? A simple example…

Imagine that John has an online store, selling furniture. One day he decides to start sending e-mails to potential customers. For this purpose, he will need mail addresses, so he gets in touch with a CPA network, which is supposed to collect some for him. In exchange, he pays 1$ for every e-mail he gets. The network creates the so called offer, and the registered Internet marketers with it can promote it, earning a part from what John pays to the network. So lets say that someone has a site about furniture, so she can place a link/banner saying “Great Furniture Promotions, Subscribe Here”, promoting John’s offer on her site. When a visitor of the site gets interested in the promos, he clicks on the banner and he gets redirected to a page, where he can submit his name and e-mail and start receiving promo offers as promised. This way John gets addresses of potential customers, the CPA network and the Internet marketers get paid collecting the data. This is how this works.

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The CPA network pays you, if you can make people do a certain action – for example to submit their e-mail address, fill a poll, sign up for a service, etc..

Forms of CPA marketing

Pay per lead (PPL)

PPL is a specific type of cost per action. With this the main target for a company is to generate leads and internet marketer are paid for every lead they send.

Pay Per Download (PPD)

The advertiser pays to the marketer for downloads of a file, application, etc.

Pay per click (PPC), cost per click (CPC)

These are the main forms of internet advertising. The advertiser displays ads with the marketer’s network and pays the marketer every time a potential customer clicks on the ads. One really popular PPC ads provider is Facebook, where almost everybody can pay to see his/her ads displayed on the social site.