CPA Marketing in 2022: The Ultimate Guide

for Beginners

When it comes to marketing your online business, your return on investment (ROI) is crucial to your
success.

Take digital advertising. A er pouring hard-earned marketing dollars into Google or Facebook ads, you
must earnestly optimize your campaigns – testing, tweaking and hoping that all of your clicks eventually
turn into sales.

Once you factor in gross profit margin, shipping costs, and other expenses, itʼs di icult to maintain a
strong enough return on investment to scale your marketing e orts.
What if instead of focusing your digital ad spend on “awareness-
metrics” like impressions and clicks, you could spend your money only
on real business results – leads, conversions, and sales?

This is where CPA marketing comes in.

CPA marketing just might be the most scalable and ROI-positive way to monetize your website.

Unlike other marketing tactics where you pay to advertise your brand with no guarantee of sales, CPA
marketing allows you to only pay a er the sale occurs at a rate you determine.

For example, if youʼre selling a $100 pair of sneakers and you pay your CPA partners a 10% commission
a er the sale, you only pay $10 in marketing spend and enjoy a return on ad spend (ROAS) of 10:1.

Thatʼs a substantial return.

Additionally, these a iliate customers are known to spend 58% more

annually than the aggregate of all other advertising channels.

This beginnerʼs guide is going to walk you through how CPA marketing works and will cover:

1. What is CPA marketing?

2. How does CPA work?

3. CPA marketing payment model.

4. Benefits of CPA.

5. Top CPA a iliate networks.

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 6. BONUS Tips to better your CPA strategy.

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What is CPA Marketing?
CPA marketing, also known as cost per action marketing, is a style of the a iliate marketing model that
o ers a commission to the a iliate when a specific action is completed.

The lead action can be anything from making a purchase to getting a quote, watching a video, or filling
out a form.

Ecommerce sites around the globe can leverage CPA marketing to

create di erent o ers and online marketing campaigns.

CPA networks then promote these campaigns through a iliates.

The CPA a iliates are paid a set fee each time a referred visitor completes the action or o er.

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How Does CPA Marketing Work?
The CPA model is a simple concept once you break down into how it works and whoʼs involved.

A iliate or Publisher: The influencer (blogger, brand, business) that promotes a business or
product in order to drive tra ic to the ecommerce site and make a specific conversion.

Business or Advertiser: The brand that desires a partnership with an a iliate to drive quality
tra ic to the businessʼ website and increase sales, generate leads, or boost conversions.

CPA Network: The platform that brings together the a iliate who wants to make money by
promoting products and the businesses that want their products promoted.

Letʼs say a popular cooking blogger named Lisa (our a iliate in this story) has a healthy following of
YouTube subscribers and blog readers.

She learned how to start a blog to make a living in her kitchen—trying new recipes and recommending
specific brands and products to her audience.

A er developing a guest blogging strategy, increasing web tra ic, and building a cult following, her
cooking crowd is eager to buy the next kitchen gadget she recommends.

Then we have our example business, EasyCooking.

EasyCooking manufactures high-quality kitchen gadgets – from cutting boards and measuring cups, to
professional mixers and food processors. Theyʼre looking to expand their marketing reach and would
love to take advantage of Lisaʼs audience of budding chefs.

A CPA marketing network brings Lisa and EasyCooking together.

Ecommerce businesses like EasyCooking utilize CPA networks to find

and partner with influencers like Lisa.

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Influencers like Lisa, who want to make money doing what they love and engaging their audience, can
turn to CPA networks to find companies that want to pay her to use and promote their products.

Lisa sends her audience to the businessʼ website and makes a commission on each sale or lead
conversion.

In turn, EasyCooking makes money from Lisaʼs referral tra ic.

The network brings them together and the audience gets to try new products and learn about emerging
brands. Itʼs a win-win.

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CPA Network Terminology
CPA network terminology isnʼt complicated, but there are a few key terms you should know as you
launch.

A iliate Manager: A person who manages an a iliate program for a merchant. They are
responsible for recruiting, engaging with a iliates, and generating revenue for the merchant.

Category: The niche for which the CPA o er applies (sports, fashion, beauty, health, etc).

Chargeback: When a sale “falls through” for an action an a iliate has already paid for. Since the
sale was never finalized or an item was returned, the previously given commission is deducted
back into the advertiserʼs account.

Commission: The payment an a iliate receives—either a flat rate or percentage—once a

successful conversion is tracked.

Contextual link: A text link placed within an a iliate website that links to the advertiserʼs website.

Conversion rate: The percentage rate at which a particular action is performed. In other words,
the number of successful conversions divided by the total tra ic.

Cookies: In a iliate marketing, cookies are used to assign a unique ID to a user who has clicked
the a iliate link to an advertiserʼs site for a specific duration. The a iliate will receive credit for
the conversion in this predefined window, typically 30-90 days.

Cost per action (CPA): An online advertising strategy that allows an advertiser to pay for a
specified action from a target customer.

Earnings per click (EPC): The average amount an a iliate earns every time a user clicks an
a iliate link.

O er page: The webpage where the conversion occurs a er a visitor takes the required action.

Return on investment (ROI): Refers to the amount of money made with a campaign. It is the
revenue divided by the ad spend, multiplied by 100.

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CPA Marketing Payment Model

The CPA a iliate marketing method is advantageous for businesses

because they donʼt pay unless a successful conversion is made.

The payouts di er based on competition and average commission rates in each vertical.

For example, headphone manufacturer Skullcandyʼs successful a iliate program o ers a 5%

commission on sales based on a competitive electronics category.

Kelty, the outdoor camping gear company, provides a iliates up to 10% on a tiered commission
structure. Itʼs all based on the competition within your vertical.

The cost per action formula is a very low-risk method for advertisers, as they only pay for the desired
actions a er they occur; unlike paid tra ic, for example, where you just pay to get people on your site
through ads.

The cost per action for an advertiser can be determined by dividing the total cost of the marketing
campaign by the number of successful actions taken.

Letʼs look at our pretend company, EasyCooking, as an example.

If EasyCooking spends $1,000 on a marketing campaign and gains 25 successful conversions on a signup
form for a recipe ebook, the cost per action is $40.

While the cost per action varies by industry, Google AdWords reports the average cost per action across
all industries is $48.96.

The automotive industry has the lowest CPA at $33.52.

Technology has the highest CPA at $133.52.

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The top 10 percent of advertisers boast CPAs up to five times better than the average.

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What are the Benefits of CPA Marketing?
CPA marketing is very profitable when you target the right audience (as an a iliate) and connect with
quality influencers (as a business).

Compared to other ecommerce marketing channels, the cost per action formula o ers a number of
benefits, including:

1. Easy to set up.

CPA marketing is easy to launch: you only need a website and a CPA network.

It takes very little capital upfront to use this marketing technique.

When you partner with a trusted CPA a iliate network, thereʼs no

guesswork as to how to get started.

By using your own website and choosing a CPA o er, you can begin getting tra ic from a iliate sites
almost immediately.

2. Pay A er the Sale.

Youʼre not paying for tra ic that doesnʼt convert.

If an a iliateʼs referrals continuously o er low-rate conversions, diversify your a iliates and shi your
focus to a more successful influencer.

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3. Low Risk.

Because no payment is made to the publisher unless a referred visitor converts to a customer or
completes a specific task, the risk is low for ecommerce businesses.

There are tools like Mentionlytics that help you monitor how the
a iliate is marketing your brand or product, but cost per acquisition
marketing doesnʼt call for an immense investment of time or capital.

4. High ROI.

A iliate marketing generates 16 percent of all online marketing.

CJ by Conversantʼs A iliate Customer Insights reveals that customers spend more money when making
a purchase o an a iliateʼs recommendation.

This means these types of marketing campaigns drive a better quality of tra ic and o ers a better value
than most tra ic sources.

A iliate marketing produces:

58% higher average customer revenue.

31% higher per customer order average.

21% higher average order value (AOV).

Plus, the more sales you drive, the higher your commissions can be. For instance, the BigCommerce
a iliate program starts at a 200% bounty payment and goes higher based on sales volume.

5. Expand Marketing Reach.

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CPA marketing gives you scale and distribution.

You get to scale your brand message faster and more consistently to
the largest possible audience.

Whether your brand is in fashion, electronics, home and garden, pet supplies, beauty, or almost
anything else, most business verticals use CPA marketing.

Take Bliss, a skincare and beauty product line, for example.

Their a iliate program provides a 10% CPA payout on all sales.

Now beauty influencers, bloggers, and media sites have the tools to easily promote them, receive a 10%
commission on all sales, and expand their a iliate marketing reach.

In every vertical, thereʼs almost always an a iliate website available

for partnerships through a CPA a iliate network.

Spread your brand awareness by reaching the a iliateʼs audience—a group you may have never
otherwise reached.

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CPA Marketing Tips & Best Practices
CPA a iliate marketing is not a “set it and forget it” method.

You must invest the time to cultivate a relationship with your CPA a iliates to create a strong conversion
funnel to keep improving your conversion rates.

To drive success through your CPA marketing strategy, try these tips:

1. Consider hiring an A iliate Manager.

To get the most out of your CPA marketing e orts, you need a dedicated in-house resource – a person
who can recruit new CPA a iliates, engage with website owners, send them new promotions, and drive
consistent revenue for your site.

A iliate Managers can provide help for a iliates by taking the following actions:

Review a iliate o ers and provides insight into strategic changes.

O er insight on what types of a iliate links or ads to use to optimize conversion.

Provide tips on content that will e ectively promote the merchantʼs products.

Send product updates and new creative to CPA a iliates.

Provide commission bonuses and incentives for high-performing CPA a iliates.

A iliate Managers can provide help for advertisers by taking the following actions:

Connect you with and recruit the top-performing a iliates in your niche.

Brainstorm new promotional ideas for particular products.

Send consistent brand messages and product updates to the CPA network.

Negotiate contracts with a iliates, oversee ROI, and compare your a iliate program to others to
stay competitive.

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 Guide you with creatives that partner well with the best a iliate programs and websites.

Deal with taxes and set up your accounting services.

2. Avoid CPA networks with bad reviews.

The downside to CPA marketing (as with any online money-making opportunity) is the questionable
networks that have shady practices.

Before you jump on board with any CPA a iliate marketing network, read the reviews.

Odigger o ers network reviews so you know which are worth your time and which to avoid.

Click on the Network Reviews tab and search for the one youʼre interested in to see what others have to
say.

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Keep in mind that no network will have a 100 percent satisfaction rating, so one or two complaints
shouldnʼt scare you o .

The most popular negative reviews topics include:

Lack of payment (please note that even highly reputable CPA marketing networks may withhold
payment for specific reasons, so review the networkʼs policies before signing on).

Unhelpful a iliate managers.

Di iculty signing up for network or using the platform.

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3. Utilize Native Advertising.

The days of embedding ugly, in-your-face banners across the header of your website are over.

It doesnʼt take blaring advertisements to convert customers.

In fact, native ads, or those that resemble your websiteʼs color, layout, and theme, are among the
marketing trends to watch in 2020.

Nonsocial native spending will grow more than 80 percent this year to $8.71 billion.

Seventy-seven percent of all mobile display ad dollars will be spent on native placements.

eMarketer predicts native advertising will make up nearly 60 percent of display spending in 2018
in the US.

Integrating your advertising into a high-quality web design will o er more conversions, as native ads
result in two times more visual focus than banner ads.

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The Top CPA A iliate Networks
As we discussed earlier, CPA a iliate networks with bad reviews should be avoided, but there are some
bright spots when it comes to reputable networks.

Platforms that provide knowledgeable a iliate managers, numerous o ers, and competitive payouts are
the ones to try.

Reputable CPA a iliate networks include:

1. MaxBounty.

Max Bounty o ers trained a iliate managers who focus on a merchantʼs marketing needs.

There are nearly 20,000 a iliates on the platform, and the a iliate
managers are knowledgeable of which partners will be the best fit for
businesses and a iliate marketers.

The a iliates are vetted and o er high-quality tra ic to the merchantʼs site.

Newbies to MaxBounty have access to a plethora of training material and the program o ers weekly
payouts.

2. Clickbooth.

Clickbooth has been around since 2002 and places a strong focus on making its program easy and
innovative for merchants.

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Clickbooth claims its artificial intelligence technology can provide up
to 25 percent increased earnings per click (EPC) for a iliate partners.

There are no costs to join Clickbooth as an advertiser.

Advertisers can view tra ic performance from each individual a iliate, and if they desire, can manage
budgets, payouts, schedules, and campaigns themselves or allow the Clickbooth team to handle the
work.

3. Peerfly.

Launched in 2009, Peerfly is a small a iliate marketing company.

It was ranked as the second best CPA network in 2016 and made the top five for 2018.

PeerFly o ers to match or pay even more than any other a iliate
network.

The network o ers free training for a iliates and payouts weekly, bi-weekly, or monthly through PayPal,
Amazon gi cards, checks, bank wire, Payoneer, and Bitcoin.

4. Admitad.

Admitad has more than 520,000 publishers and more than 1,200 advertisers.

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This network was launched in 2009 in Germany and hosts international o ers, giving it a large footprint
across ecommerce businesses.

Admitad boasts a client-oriented approach with personalized training and other learning options.

A iliates only need a $10 minimum for payouts and can be paid via
PayPal, epayments, and wire transfer.

The network o ers anti-fraud technologies, cross-device tracking, and deep linking options.

5. W4.

W4 reviews publisher applications before approving their accounts.

The publishers can boost their revenue by referring others to this network.

W4 has a dedicated support team to help a iliates and merchants and

o ers a rewards program for the highest-earning a iliates.

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CPA Marketing Trends
Following the hottest CPA marketing trends in 2020 will increase your revenue and help create a
strategic approach for next yearʼs digital marketing plan.

CPA marketing is expected to expand to developing countries in 2020 and beyond.

CPA marketing should have a focus on copy rather than pop-ups and headlines.

Influencer marketing will begin to overlap into CPA marketing, giving many new ecommerce
businesses even more reason to join CPA a iliate networks.

Ecommerce businesses will shi a portion of their budget from traditional marketing (PPC, social
media, and banner ads) to a iliate and performance marketing.

Reliable CPA a iliate marketing networks will continue to increase transparency and o er the data-
driven information that clients demand.

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Executive Summary
CPA marketing is the next step in digital marketing that ROI-minded marketers are looking for.

Itʼs a fast-paced and optimization-friendly cooperative tactic that puts real business results at the
forefront.

Itʼs a way to scale and distribute your brand message while building
strong relationships with partner websites.

This customizable, easy-to-launch strategy is also a win for the a iliates, as they can choose o ers that
mirror their own brand and website, allowing them to monetize content on their site with banners and
contextual links.

If you want to expand your websiteʼs reach, maintain a strong return on investment, and feel a real
business impact, incorporate CPA marketing into your strategic plans.

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