Affonso

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