This is the second part of my new article series on Cost-Per-Action (CPA) marketing. In this series, we cover the basic ideas involved in CPA marketing and how you can use them in your business. In Part 1 of our Cost-Per-Action (CPA) Marketing series, I gave you a general overview of CPA marketing, how it is used, and how it is different from other forms of marketing.
Now, in Part 2, we’ll continue with how you can increase your lead generation, conversions, and sales activities with CPA. And finally, in Part 3, we’ll cover ways that you can use CPA marketing to supplement and grow you business.
How Do You Use Cost-Per-Action (CPA) Marketing as an Advertiser?
Basically, CPA marketing as an advertiser allows you to create a sales funnel that has a stair-step process for gradually converting a lead into a customer. Instead of trying to convert a prospect on first contact, you open yourself up to being able to take a multi-tiered approach.
Traditional lead generation allows this by signing someone up as a subscriber and then reaching them through an email autoresponder sequence. However, with the spam and email deliverability problems in today’s online world, this has some limitations as your sole marketing channel.
What Cost-per-action marketing does is opens up your opportunities. For example, you could do any of, or a combination of, the following:
- Create a zip-submit or state-submit form that would allow you to collect that information from a visitor, and then you could channel them further into the sales funnel while simultaneously customizing your content to meet their profile. You could use geo-targeting to fine-tune your message.
- Create an email-submit CPA offer. This could funnel people into your subscriber process, or just add them to a specially-tailored autoresponder sequence. You could even customize them based on whether or not it is a free-email-address.
- Create a short-form or long-form offer collecting some basic information about your prospect and then use that information to filter them through the funnel in different ways depending on their choices.
- Collect a name and/or a phone number and send it through your offline phone marketing team.
- Run a contest, sweepstakes, or give-away and pre-qualify leads with collection of certain information. You can use this information to refine your marketing practices (who is interested in what kinds of offers?) as well as funneling them into other marketing channels like those above.
- Offer downloadable software such as usable software or toolbars that can maintain a more continual contact with your prospects, allowing you to send them messages, pop up advertising, or offer them special benefits. If you combine this with some kind of registration, you can add email marketing to the mix or have the software logging them periodically into some kind of member area where you can collect additional information, incentivize things, advertise on your behalf or as an affiliate, and much, much more.
- Free trials are also popular. People get something for free, and you have the opportunity of channeling them into a continuity program or email or phone marketing..
- With the increased cell phone customer base, PIN submits are also becoming popular. The online form requests a cell phone number, and a text message with a PIN in it is sent to the phone. You enter the PIN on the onine form to confirm. Often related charges are billed to your phone bill, which allows the advertiser to say that you don’t need a credit card!
The best part of CPA marketing is the flexibility. You can pre-qualify prospects through the system in gradually-increasing decisions on their part, easing them through the system instead of shocking them with a request for a credit card. Prospects are more tight with their wallets these days, so any methods that can boost conversions are helpful.
Leveraging Your Marketing Budget
Another advantage to using CPA Marketing for your business is that you can leverage your marketing budget much more effectively. Like with traditional CPS marketing, you are only paying for results. However, you do have to do more monitoring. You want to make sure that your campaign is collecting quality leads and actions, and that it is affecting your sales funnel with increased conversions and sales. Since you are paying prior to a sale you want to ensure that your results are of sufficiently high quality.
One answer to this dilemma is to use a CPA network to present your offers. They are experts in CPA marketing and can help you to get the most out of your campaigns and budget. They monitor their affiliates closely and make sure that they are helpful rather than harmful and can even shut down an affiliate’s access to your offers if you need to improve your results.
The other positive leverage factor is scalability. You are leveraging the efforts of all of the CPA affiliates who are promoting your offers. The work of many can be much more effective than the work of just your marketing team, not only in reach but also in creativity. Who knows? They might even develop a new technique that is particularly effective that you can adopt for your own.
Using a Network versus In-House Tracking
There are a number of reasons that a network can benefit you. They bear the cost of maintaining high-quality tracking systems, allowing you to spend your marketing budget on more direct methods of success. They interface with your affiliates, so you don’t have to manage them directly, or handle their payments, or monitor them.
However, they get a cut of your fee in return, which skews things slightly so that they are more likely to want higher performance, even if it doesn’t get you the best leads. You need to make sure that they are looking out for your best interests at all times. If not, find another network. If you prefer to go it alone, you’ll have more overhead to manage, but if you already have an affiliate program in place, with tracking software, a help desk, and staff, then expanding out into a CPA program as well as your current CPL or CPS system might be in your best interests.
In the end, CPA marketing is certainly worth taking a look at. It’s flexible, scalable, and can be a great way to market test before rolling out a full product line.
CPA marketing offers new marketing channel opportunities for you as an advertiser. In Part 3 of this Cost-per-Action marketing series, we’ll discuss how you as an affiliate marketer with your own business can use CPA marketing to increase your business profit.
Do you have any experience as an advertiser with CPA? Have you had any particular successes or problems that you can share? Do you use a network (or more than one) or do you handle it in-house? We’d like to hear about it here.
Tags: Advertiser, CPA, marketing