CPA

CPA (Cost Per Action) is a model that grants a reward for an action the user performs after clicking on an affiliate link. Here, only the result is crucial. The user must perform a predetermined action so that the affiliate receives a payout.

In traffic arbitrage, CPA is a foundation of affiliate marketing, thanks to its transparency and convenience. It means that the drawbacks of other cooperation models are excluded here, as the conditions are plain and clear.

Target action in CPA: how do offers define it?

It's a predesignated action that indicates the users' interest. A target action can be registration, email confirmation, phone verification, installation, deposit, or purchase. The offer always determines the payable activity.

What do you need to know about the differences between CPA, CPL, and CPS?

CPA is a general term, while CPL and CPS are variations of CPA. CPL (Cost Per Lead) refers to the reward for generating a lead, while CPS (Cost Per Sale) represents the payout for a completed sale. So, the target actions in these two cases are limited.

Should you work with CPA? Analysis of pros and cons

The model is convenient because payment is granted for a specific result. Predictability enables affiliates to scale their profitable funnels easily. They always know what they are paid for. CPA is suitable for testing different traffic sources, creatives, and funnels.

Although getting the action is not always easy, as part of the traffic can be lost on the way, while some leads may be rejected. Some verticals are more demanding when it comes to the target actions. Hence, not every affiliate can gain conversion. Affiliate programs sometimes use a hold. It means there will be no reward until the traffic quality is confirmed. That is why a thorough optimization and improvement of funnel setups is crucial.