Over the past year the US has seen one of the worst recessions in history; some could successfully argue a depression. With unemployment rates skyrocketing and consumer spending on one of the worst declines we have ever seen, how to companies reach out to consumers in a cost effective manner?

Pay-for-performance CPA Advertising is the rising star for companies who need to increase their bottom line while still reaching millions of consumers. Using the pay-for-performance advertising model, companies can reach consumers through channels that rival television; yet not having to spend the millions of dollars for TV commercials and magazine ads.
Using the CPA advertising model, a company will only pay for the action they are looking for; product sale, lead generation, monthly subscriptions. The percentage that an advertiser is usually between 55% to 100%; depending on the type of item/service being sold and type of program; single sale, monthly subscription, etc., however, the cost is much less because it is only being charged for the single action.

What this means is if you are selling a skin crème on a monthly billing, (continuity), and the charge is $49.95, the advertiser would pay $49.95 to the affiliate network for the first sale only; leaving the advertiser with a monthly recurring customer and a new email to add to their marketing database.

The beauty of this type of advertising is unseen by many advertisers; the mailing list they are generating. When an advertiser gets a substantial email list of consumers, they can work with their affiliate network to monetize that data and make even more profits from that partnership. On average the affiliate network will provide a data management agreement where the advertiser and the affiliate network share profits 50/50 on all sales resulting from mailing either the advertiser’s own offers and/or other offers to the data; a large enough data supply can generate $50,000.00 a month or more.

So as companies look for new and innovative ways of keeping their bottom line solid, pay-for-performance CPA affiliate marketing provides answers they need.

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This entry was posted Thursday, May 21st, 2009 at 11:12 pm and is filed under Pay-for-Performance Affiliate Marketing, meta. Both comments and pings are currently closed.