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Understanding Affiliate Marketing Cost Per Sale and Cost per Action


Understanding Affiliate Marketing Cost Per Sale and Cost per Action

Hey friend, live on this thread we are going to discuss the difference between CPS and CPA with a simplified language that at the end of this thread, we believe you will understand the differences between these two models of affiliate marketing. starting with the CPS

Understanding CPS And CPA.jpg

1: Affiliate Marketing Cost Per Sale:
The affiliate marketing cost per sale module, is simple when you sign up to an affiliate vendor and your earning is defined by the sale records, in other words, you only earn money when someone buys the affiliate product or service through your affiliate promotional link

So even if you promote your affiliate link to 10000 audiences and no one buys, you will make no money, but will only make money when you promote your link and someone buys, so you make money only if the audience buys through your affiliate link

Hope you get it, here the product you are promoting could be a software, online course, or even a physical product like computer system, mobile phone, name but few. Both digital products/services and physical products are all listed in the affiliate market, though most time earning is defined by CPS, Cost Per Sale

CPS, which stands for Cost Per Sale: this also is defined by the merchants (Affiliate Platform) and with the affiliate vendor (Owner of the product or services) in all, CPS can be small or large, but most time they have a brick and mortar business

There are hundreds to thousands of merchants that offer Affiliate marketing programs with Cost Per Sale, among are Amazon Associates Program, Alibaba, etc

While Amazon Associates has been helping thousands if not millions of affiliate vendors and marketers all over the world, who are earning good commissions from the program when someone buys through their affiliate link

Remember with this Cost Per Sale module, you only make money when someone buys from your link and make no money even when you send millions of visitors to Amazon via your affiliate link and no one buys. Hope that is well understood, so let move to CPA

2: Understanding Affiliate Marketing Cost Per Action:
This is another great way to earn good commissions from an affiliate as an affiliate marketer, although the Cost Per Action affiliate program is more saturated, highly competitive, and require a good budget to run

Though it remains the easiest way to make money offering an affiliate program

Yes Cost Per Action remains the most easier way to make money from the affiliate program when you understand how to invest money to make more quick money as profits

How Cost Per Action Affiliate Program Works
This is how cost per action works, you can sign up for an affiliate program and use paid ads to promote your affiliate link, so in other words

You can invest about $1000 and at the end of the program you make up to $1300, such a campaign is considered successful because here, you spend about $1000 to make $1300 which your profit is about $300. That is cool. Right?

One reason why cost per action is considered easier is that you don't need a sale to make a commission, just send out affiliate links and let people click

When the audience you send campaign click, the click here is considered active, so you make money from that single action even when the users did not buy

Click and earn, is another layman's phrase to use here, so in CPA you are sure of having a commission with every action your audience takes

So the nature of Cost Per Action has made this single module highly competitive and most affiliate marketers understand how it works, get money, put in money, and make more money. That is it

Though: There are other affiliates marketer modules such as CPC Cost Per Click, CPM Cost Per Impressions (Earning base on impression eyeballs), And PPC Pay Per Click ( Which is earning a base on traffic). Maybe some other time I will create a thread on them. For now thanks. From Mbonu Watson, World forum, Global Community Forum Platform For All Nation
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