CPA vs CPS
CPA stands for Cost per Action or Acquisition and CPS stands for Cost per Sale.
The word ‘Cost’ is used in relation to the merchant or the owner of the product who needs to spend money to acquire a lead or make a sale. Unlike some other affiliates, promoting either of these two, I prefer doing both CPA and CPS in my affiliate business. The reason is that CPS is a long‐term money making opportunity whereas CPA is a short‐term to mid‐term revenue machine. CPA is short‐term to mid‐term because the merchant (offer) needs to only collect certain number of leads before they close down or expire the program. However these types of offers can last for few months to 1‐2 years.
In my upcoming posts I’ll go through both, just so that you understand the different dynamics of each, but I’ll focus mainly on CPA offers & leads – just because the market is so ripe at this time that we can easily pick the low hanging fruit.
I’ll also show you the offers where we get paid $35 for a simple 5‐6 form fills. Yes that’s a normal payout of CPA offers and you can easily be making $200 ‐ $400 for any one of these lead offers per day or short form‐fills as they are called. Imagine the fun if you have multiple of these offers running simultaneously. CPS offers are long‐term. Merchants are only paying commission of goods sold, thus there is no urgency to close down as long as affiliates are making sales.
In my upcoming posts I’ll also go through some of the CPS opportunities, just so that you can see they are a viable opportunity as well.
For you to be successful – start with CPA short form‐fill offers, stabilize them and then slowly move towards CPS.
There are literally hundreds of programs out there and we can search them using Google search.
I would concentrate on ‘reliable’ networks or the ones you pick. There are times when you hear about a new affiliate network starting and it’s very enticing to join it, just because it’s accepting any and all applications.
Now think for a minute, just because it’s accepting your application does not mean it’s going to be in existence when the time comes for you to get paid. Remember you are paid Net15 or Net20 from most of the CPA networks.
That means after the month of the sale has ended, you’ll get paid the following 15th or 20th. Let me give you an example – Say you made a sale on Oct 5th, you will either be paid on Nov 15th or Nov 20th. So that is a good 45 days to 50 days that the network is ‘holding’ your commissions.
I also have heard numerous instances from fellow affiliates where they did join some unknown network and then the network never paid them because the network did not get paid from the merchant or the product owner. Imagine this, what is your fault if the network did not get paid from merchant, you worked hard to make those sales and paid for traffic so you should get paid no matter what. The big networks have this cushion of coverage that they have the ability to pay you no matter when the merchant pays the network.
That’s why concentrate on ‘reliable’ networks to stay safe or do your homework when selecting. Another important task at hand is choosing a reliable web hosting company for your landing pages.