If you`re like most advertisers, you will probably stick to the one standard model of performance marketing that you are most familiar with. For example:

  • CPA (Cost Per Action)
  • CPL (Cost Per Lead)

CPA vs CPL – What is the difference?

CPA stands for Cost Per Action. It is a model where leads are only paid if they complete an action, such as buying a product.

CPL stands for Cost Per Lead. It is a model where leads are qualified into genuine prospects being sold.

Lets start comparing between CPA and CPL.

There is a lot of buzz around CPA advertising at the moment. It is most commonly used in affiliate marketing. Through CPA model, benefits can be enjoyed by both advertisers and partners.

  • Instant Gratification (for the Publisher)

The main difference between CPA and CPL is that with CPA, the conversion happens almost immediately. Once the sale is made, the advertiser or affiliate gets paid. However with the CPL model, the first exchange of money could be many months away.

  • Low investment (for the Publisher)

CPA pays out much better than other models. It is widely recognized as one of the easiest ways to make money online because of the low cost of entry into the marketplace as well as the support available from the different CPA Networks. Additionally, in most cases, the publishers do not have to make an actual sale to be paid. Many companies pay for lead generation so payment can be made after someone have completed a form or survey with their name and email address. This means that the publishers/affiliates simply need to focus their campaigns to a more targeted audience in order to gain more out of it.

  • Availability and support from CPA Networks (for Advertisers and Publishers)

Once you have decided to get involved with CPA affiliate marketing, the next step is to check out the different CPA networks online and apply for admission. Once you have been accepted, the network sets you up with offers from different companies who want your website traffic to perform some specific action which will in return, result in the affiliate to get paid.

There are many of such CPA/Affiliate Networks. A simple google search would show you a long list of potential networks to work with. CPA networks want you to be successful as an affiliate! They will supply you with much of the advertising and promotional materials needed to market their opportunities from advertisers. This is a huge advantage as all you have to do as a publisher is to supply the targeted traffic from your content and website.

One of such affiliate network is Direct Affiliate. Get priority and dedicated support from Direct Affiliate. They provide functional indicators to help you analyse traffic on your pages better and to increase conversions. With detailed statistics, you will be able to verify the effectiveness of your actions at any time and respond accordingly to increase efficacy all with the support and availability of Direct Affiliate every step of the way!

As an advertiser, rest assured, the chosen CPA Network will work just as closely with you to ensure verified publishers with the right match for your company, brand and target audience. Most if not all CPA networks will provide support in the form of an affiliate agent who will help you get started by providing initial training and also answering any questions you may have.

  • Low Risk (for the Advertiser)

The best thing about cost per action advertising is that it is very low risk. The advertiser  only pays when their ad is effective in converting someone, rather than every time someone sees it (and potentially ignores it), or every time someone clicks your link but then bounces straight off your site in seconds. Therefore advertisers consider CPA the optimal way to buy online advertising as they only pay for the ad when the desired action has occurred. An action can be a product being purchased, or a form being filled.

  • Real time tracking (for the Advertiser and Publisher)

Another advantage is that it is very easy to work out your return on investment and how your campaign is going with cost per action. This means you can follow your campaign in real time and tweak it as and when you see ways of improving your message or who it is targeted at. If you have signed up with a CPA network, they will do all the tracking for you as well and house your account details.

Pros of CPL

  •  Better targeting opportunities

Lead generation serves to more accurate targeting. Those visitors who are ready to perform an action, e.g. fill in the form, are more likely to become customers. This provides the advertiser with a better chance of building a solid user base.

  • Greater brand awareness

Aside from generating leads, CPL campaigns also help to increase the exposure and awareness of an advertiser`s brand. CPL advertising is intended for prolonged placement of an ad on a publisher`s resource. The long duration of visibility will lead to more impressions and display views. Therefore it gives an advertiser more opportunities for building up their brand awareness.

  •  Lower Risk and Easier (For Publishers)

A lead could consists of just a signup, which can simply be a user`s contact details, such as a zip code, an email address or a phone number. This info is later used by advertisers to try to sell their products to the consumer either through newsletters, email campaigns, or phone calls. There in CPL model, although it is a lot easier, the payout is usually lower as well. This is because the publisher is going to be facing lower risk, since a lead is “easier” to obtain rather than an actual purchase. Ultimately, the advertisers would need to take a further step into converting the leads into a sale.

These are some of the benefits offered by CPA and CPL which can help you generate a significant income in a relatively short period of time.

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