subject: Cost per action Profit - What on Earth Will it Mean? [print this page] Cost per action Profit - What on Earth Will it Mean?
To put it simply, profit means an effort to make money from a cost difference of an action taken on different markets or platforms. In the case of Cpa profit all it means is you, the affiliate, act as an agent buying visitors (example: search engines like google) for just one charge then selling it back -- as leads -- to the network for any higher price. Confused?
Don't worry it's simple:
Let us assume you are promoting a Cpa offer. You venture out there, buy visitors for that particular offer and get it converted for less cash compared to offer pays. If you are profitable in doing this, you generate the difference between what are the network will pay for contributing and the charge you paid to obtain contributing (sale).
Here is a good example: An X offer pays $5.00 per business lead. You launch a PPC campaign and buy visitors for, let's say 0.25 cents per each click. Now let's assume only one out of 10 clicks converts. What is your cost per conversion (business lead)?
Cost per sale: 10 clicks @ $0.25 ea. = $2.50
Your Profit: $5.00 - $2.50 = $2.50
Here's what you have done: You took a deal that will pay $5.00 per sale. You bought traffic and got a conversion that set you back $2.50. That conversion (lead) you sent (sold) to the network that paid you $5.00 for the trouble. That's precisely what Cost per action profit means; profiting from the distinction between the acquisition then sell charge on two various markets.
Whether they realize it or not, all affiliates who promote Offers of cpa marketing are visitors brokers. They're buying traffic at a certain price and sell it back (in the form of a lead) for, with luck,, a higher charge. All of them participate in Cpa Arbitrage. The idea here is to buy (visitors) low then sell (leads) high. To maximise your profits you must find methods to pay as little as possible for your visitors. PPC is only one of many other approaches you can decide to try promote Offers of cpa marketing. The smart affiliates go way beyond paid visitors. They go where visitors are free.
