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Break Down Of CPA Marketing Pricing Models
2018-03-06, 05:49 PM,
Break Down Of CPA Marketing Pricing Models

There exist numerous affiliate marketing pricing models with the CPA pricing model being one of them. Before we look at the CPA pricing model, let us first look at other affiliate marketing pricing models.

[Image: citadel-cpm-squarelogo-1476717448321.png]
It is also referred to as cost-per-thousand impressions. The affiliate earns a fixed amount for every a thousand impressions on their adverts. The rate that the advertiser gets varies mainly depending on the type of traffic the advertiser receives. Organic and target traffic is highly valued thus higher CPM.

[Image: cpc.png]
Also referred to as cost-per-click marketing, the advertiser earns for every click they get on their advert.  The earning from every click varies with the type of the traffic source and the prevailing competition in the niche.

Cost Per Call (CPC)

[Image: Cost%2BPer%2BCall.png]
The advertisers earn when customers call a specific number to qualify a transaction or purchase.  The amount they earn will depend on a given criteria, for instance, based on the length of call or the number of times the customer calls.

Cost Per Install (CPI)
[Image: cpi.png]
Mainly used by affiliates in marketing mobile apps. The advertiser earns every time someone installs software or an app. CPI has recently grown more popular due to the increase of mobile traffic.

Cost-Per-Action (CPA)
[Image: CPA.png]
This model works best for affiliate marketers that need a direct response. It also favors the merchants because they only pay per particular action accomplished which is predefined at the initial stage.

The advertiser also benefits because the CPA model is quite straightforward. The advertiser earns for every action accomplished, which does not necessarily mean that a lead has to convert. This makes it less risky for the advertiser and more risky for the merchant. Talking of leads, this brings us to the next CPA marketing pricing model.


[Image: tenancy.png]
In this model, the advertiser or merchant or pays a fixed rate on monthly basis regardless of the amount of clicks, impressions, or leads their campaigns receives. It is perfect for established brands that have access to huge traffic.  

Cost Per Lead (CPL)
[Image: cpl.png]
CPL is suitable in industries where the lead acquisition is not always possible in one online session. As such, payments are made based on a prior set out criteria which can be as simple as gathering customer contacts to as complicated as getting the customer to commit to a large project. The earnings vary on the level of action required. For instance, having a customer fill a large form submission will pay higher that submitting contacts of a few potential customers.

Cost Per Download (CPD)
[Image: cost%2Bper%2Bdownload.png]
The publisher earns when an offer they are promoting is downloaded. Similar to cost per install, CPD model has grown popular due to increase in mobile traffic.

Revenue share
[Image: revenue%2Bshare.png]
In this model, the merchant splits the commission of the lead with the publisher at a specific rate. It is mostly applied on subscription based offers.

Hybrid pricing model
[Image: hybrid.png]
It combines numerous pricing models offering superior benefits to both merchants and publishers. For instance, when the advertiser wants to focus a lot of traffic to a specific offer, using different pricing models will help him achieve this.

The Wrap-up

The model you settle for as an advertiser will mainly depend on what you want to achieve, the kind of content you have, and the kind of traffic you receive. CPC and CPM work best for those who want to place contextual ads on their pages. The CPL and the CPA models are currently thriving due to the increasing demand for performance-based advertising and direct marketing.

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