About
Cost Per Action (CPA) Marketing is an affiliate model where a commission is paid when a user takes a specific action. These actions include filling out a form, getting a quote, signing up for a trial, or making a purchase.
Cost per acquisition (CPA), also known as cost per action, pay per acquisition (PPA) and cost per conversion (CPC), is an online advertising pricing model where the advertiser pays for a specified acquisition – for example a sale, click, or form submit (e.g., contact request, newsletter sign up, registration, etc.
Direct response advertisers often consider CPA the optimal way to buy online advertising, as an advertiser only pays for the ad when the desired acquisition has occurred. The desired acquisition to be performed is determined by the advertiser. In affiliate marketing, this means that advertisers only pay the affiliates for leads that result in the desired action such as a sale. This removes the risk for the advertiser because they know in advance that they will not have to pay for bad referrals, and it encourages the affiliate to send good referrals.
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