What does Cost Per Action (CPA) mean?
A pricing model where advertisers pay for specific completed actions rather than impressions or clicks.
Pricing ModelPerformance MarketingMonetizationDifficulty: Intermediate
Definition
Cost Per Action (CPA) is a performance-based pricing model where affiliates earn commission when visitors complete specific desired actions. These actions can include purchases, form submissions, sign-ups, or other valuable conversions. CPA models align marketing costs directly with business results.
Examples
- Purchase completion
- Lead form submission
- Account creation
- App installation
- Free trial activation
Common Mistakes
- Setting incorrect action values
- Poor action tracking
- Ignoring action quality
- Insufficient fraud prevention
- Complex action definitions
Best Practices
- Clear action definition
- Value-based pricing
- Quality monitoring
- Fraud prevention measures
- Regular rate optimization
FAQs
- How do I determine CPA rates?
- Consider action value, target ROI, competitor rates, and program margins. Factor in both direct and indirect costs.
- What actions can be tracked?
- Any measurable user interaction including purchases, sign-ups, downloads, form submissions, or custom defined events.
- How to prevent CPA fraud?
- Implement robust tracking, monitor traffic quality, use fraud detection tools, and verify action quality regularly.
Tools
- Action tracking software
- Fraud detection systems
- Analytics platforms
- CPA networks
- ROI calculators
Resources
- CPA Rate Guide
- Action Tracking Setup
- Fraud Prevention Guide
- ROI Optimization Tips
Expert Tips
- Focus on action quality
- Test different rates
- Monitor competitor rates
- Regular fraud checks