What CPA marketing is
CPA marketing is also called affiliate marketing. The acronym CPA stands for Cost per Action. This is what affiliate marketing is based on: lead a customer (action) and get a reward (cost).
There are three types
of parties in affiliate marketing:
Advertiser

An online store or service planning to sell more goods and services to new and existing customers, ready to pay a fixed rate or fraction of revenue for every customer led to them.

Publisher

A person or company that knows how and where to find customers that would be interested in target goods or services. A publisher may be a blogger, website or social community owner, contextual or target advertising specialist, or just active Internet user fond of leaving reviews and recommendations.

Admitad affiliate network

The system that brings together publishers and advertisers, provides tools, and monitors operation quality. Admitad's part is to create a unique link for every publisher. When users click through such a link, the advertiser will see which publisher led a customer, and pay a reward for every sale.

An affiliate network gives a publisher a special link to an advertiser's website
The publisher leads customers to the advertiser through that link
A user (lead) makes a purchase
The advertiser sees which publisher led the customer
Affiliate marketing workflow:
1
2
3
4
If the customer receives a product, pays for it and doesn't return it, the publisher gets a reward
5
Example:

Sports footwear store KicksGeeks stands in need of new customers. The store manager comes to Admitad and offers to pay a 10% fee of every purchase amount to everyone having led new clients.



Admitad has two publishers: Michael and Janine. Michael owns a wide-reach blog where he tells his subscribers about the news in the sports footwear industry. Janine, in her turn, has a small but enthusiastic Facebook community of young mothers sharing recommendations with each other. Admitad provides Michael and Janine with unique links to KicksGeeks' website and offers to publish them in Michael's blog and Janine's Facebook community.



Michael prepares and drops a post with a header saying, "Check out KicksGeeks for their new Nikedidas plimsoll collection. A treasure for style connoisseurs! Here's the link." Janine posts something like, "Hey girls, I've just found catchy sports shoes with a 30% discount at KicksGeeks. Check out the models I love (link)."



On Michael's blog, 10 followers click through the link and make purchases jointly amounting to $2,000. In Janine's community, 10 subscribers also followed the link and bought something, but their overall receipt accounted for $700. Using unique links provided by Admitad, the advertiser can see how much revenue every publisher generated. Eventually, every publisher was rewarded a 10% fee of the overall purchase amount. Thus, Michael's commission totaled $200, Janine's $70.

Check yourself!
Find out if you have learned everything correctly
Start
What does the acronym CPA stand for?
Bingo! A CPA model implies paying a publisher for a target action
Miss! CPA is for Cost per Action
Miss! CPA is for Cost per Action
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Who is a publisher?
Wrong! Any person, who can drive leads to online stores or services, can be a publisher
Great! Any person, who can drive leads to online stores or services, can be a publisher
Wrong! Any person, who can drive leads to online stores or services, can be a publisher
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Results
Who is an advertiser?
Wrong! An advertiser is a person or company publishing an ad of their product or service on a third-party resource and paying for such promotion.
Right! An advertiser is a person or company publishing an ad of their product or service on a third-party resource and paying for such promotion.
Wrong! An advertiser is a person or company publishing an ad of their product or service on a third-party resource and paying for such promotion.
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What is an affiliate network?
Bingo! An affiliate network ensures tracking of users the publishers lead to advertisers' stores, and maintains the reward payment system.
Miss! Primarily, an affiliate network is an intermediary between an advertiser and publisher. It ensures tracking of users the publishers lead to advertisers' stores, and maintains the reward payment system.
Miss! Primarily, an affiliate network is an intermediary between an advertiser and publisher. It ensures tracking of users the publishers lead to advertisers' stores, and maintains the reward payment system.
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Results
Under a CPA model, what does an advertiser owe to a publisher who has led a customer?
Wrong! An advertiser pays a publisher a monetary reward, in the form of interest or fixed rate.
Wrong! An advertiser pays a publisher a monetary reward, in the form of interest or fixed rate.
Correct! An advertiser pays a publisher a monetary reward, in the form of interest or fixed rate.
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Check
Results
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