Cost per action (CPA) marketing is like affiliate marketing. The main difference is that you can earn commissions from actions that don’t require a sale.
You can earn commissions from various actions. It can be an email submit, zip submit, app install, or filling out a form.
Easier to earn. It can be easier to make money with CPA affiliate marketing because you don’t have to make sales. You can earn commissions on various low-barrier actions.
No product creation. You also don’t need any product creation skills. You market the existing offers of other businesses. This means less headaches. No dealing with customer service, tech issues, fulfillment, etc.
- Low commissions. If you’re looking at it from an earnings per commission stand point then commissions can be low. Because you’re not providing paying customers businesses will pay you lower commissions. For example, you can expect to earn around $1.00 per email submit. Of course, with the right campaign this can still be very lucrative if scaled.
- Offer restrictions. Because you’re not referring paying customers there are more rules to follow. After all, every business wants to be sure you’re sending them high-quality leads. Each offer may only approve leads from specific countries, devices, and traffic sources. Also, there may be an initial limit on how many leads you can refer to each day. If your leads are low-quality, you may be banned from promoting the offer.
- Approval process. Before you can promote CPA affiliate offers you’ll need to join a CPA affiliate network. These networks have a stricter approval process than networks like Clickbank. Again, they need to make sure new affiliates will provide high-quality leads. You can expect to do Skype interviews first to get approved. Also, some networks are invite-only and need a referral.
- No customer base. Most affiliates just arbitrage traffic to make money. For example, imagine a CPA affiliate gets visitors for $0.05 per click. So for every 1,000 visitors he pays $50. Now imagine he gets a 2% conversion rate. Meaning he gets 20 conversions for each visitor. Now, for his offer, he gets $4.00 per email submit. So he makes $80 per visitor, or $30 profit. In this scenario, a typical affiliate will just scale this up. Now, it can be lucrative. But it will be short-term. He didn’t build a list of his customers. If his offer no longer converts profitably this campaign is over. If the advertiser doesn’t like the quality of his leads it’s over. The point is to keep as many things as possible in your control.
- High competition. Affiliate marketing is getting big. There are large conferences for it every month. And excited masses means bigger crowds and higher costs. For example, mobile advertising was all the rage. Then native ads. This increased the cost of advertising on those channels for everyone. I’m not sure what the next trend will be. But I am sure that more and more people are looking into affiliate marketing. And the costs will rise.
- High learning curve. I actually like strategies that require high learning curves. Because it weeds out everyone else that’s focused on events and not process. For a beginner, CPA affiliate marketing has a high learning curve. Sure, you don’t have to learn how to create a great product. But you still must master salesmanship and direct response marketing. For every thousand affiliates only one real student is actually making money from it.
- Upfront investment. To actually scale things up and make a game-changing income you’ll need to do paid advertising. This requires a few thousand to test a campaign. And that test campaign can fall flat on your face. Imagine spending $3,000 and making zero commissions. It happens. Even for the pros. Again, there’s a big learning curve.
VS Digital Flipping
I like affiliate marketing and CPA marketing a lot. But it takes a lifetime to master. You’ll need to be a true student of direct response marketing. This requires a big time commitment and upfront investment. And for most beginners, this is not an ideal way to start. That’s why Digital Flipping may be the better alternative.
- Small learning curve. With Digital Flipping, there’s no major learning curve. I created a process that doesn’t need a lot skills. For example, you don’t need to learn how to setup advertising campaigns. You don’t need to create products, either. Instead, we simply find buyers with money ready. We find out what they want and then we outsource that work and profit the difference.
- Less competition. With Digital Flipping, you’re not competing with thousands of other people. In fact, you can see the amount of competition you have with each deal. Usually, it’s around 5 to 20 people. 50 people at most. This is far less than the hundreds of thousands of affiliates out there.
- No upfront investment. With Digital Flipping, you don’t spend any money upfront. For example, imagine someone wants a website designed for $500. Once you close the deal that money is secured in escrow first. So you’re guaranteed that money once you send the work. Now, we’re not doing the work ourselves. We’re outsourcing it to someone else. So imagine we find someone that can do it for $100. We then profit $400.
- Control customer base. With Digital Flipping, you have access to all your customers. You can message them and sell them more and more digital products or services.
- Bigger earnings. I don’t do a deal unless it’s at least worth $100 in profit. And with Digital Flipping, each deal can be worth anywhere from $250 to $1,000 or more. Flipping just one or two deals a month could lead to a decent $1,000 extra. And flipping a couple deals is much easier than getting 1,000 conversions at $1.00 each.
- In closing, affiliate marketing is a great way to earn money. In fact, I’d like to share more advanced courses using that strategy. But is it a great choice for a beginner? Probably not. I recommend beginners build up experience and fund first with Digital Flipping. Then when you have some cash reserves then consider advanced strategies that require bigger pockets.