September 25, 2023
If you’re new to CPA and affiliate marketing, the jargon can be confusing. To help you get started and start earning online, here’s a simple glossary of the core terms every affiliate marketer should know.
What is CPA Marketing?
Cost Per Action (CPA) marketing is a model where advertisers pay affiliates (publishers) when a specific action is completed. Actions could include:
- Clicking an offer
- Making a sale
- Submitting a form
Advertisers choose the action they want to pay for, and tracking software monitors these conversions.
How CPA Works: The Model
- Advertisers want to promote their products or services.
- Affiliates (that’s you!) promote those offers to their audiences.
- CPA Networks connect advertisers and affiliates, verify traffic quality, and handle payments.
For example, if you run a fitness blog and promote a weight loss supplement, targeted visitors to your blog are more likely to convert, earning you commissions.
Payment Types in CPA
- Pay Per Sale: Earn a commission or flat fee per sale.
- Pay Per Action: Get paid for any defined action (e.g., email sign-up, trial).
- Recurring Payments: Earn ongoing commissions for subscriptions or repeat purchases.
Some advertisers, like Amazon, use tiered payouts—the more sales you generate, the higher your commission rate.
Essential Affiliate Marketing Terms
Conversion
An action taken by a lead—like purchasing, signing up, or downloading—that earns you a commission.
Affiliate
A person or company promoting an offer on behalf of an advertiser, earning commissions for leads or sales generated.
Offer
The product, service, or action you promote to earn commissions (e.g., product purchase, app download, newsletter sign-up).
Landing Page
A dedicated webpage designed to convert visitors by encouraging them to take specific actions, such as buying or signing up.
Traffic Sources
Where your visitors come from, like Google Search, Facebook, TikTok, or email campaigns. Different sources impact your conversion rates.
EPC (Earnings Per Click)
Average earnings you make each time someone clicks your affiliate link.
Formula: Total commissions ÷ Number of clicks = EPC
ROI (Return on Investment)
Your profit after subtracting costs from revenue.
Formula: Revenue − Costs = ROI
A positive ROI means your campaigns are profitable.
CTR (Click-Through Rate)
Percentage of people who click your ad after seeing it.
Formula: Clicks ÷ Impressions = CTR
Higher CTR usually means better ad performance.
CTA (Call to Action)
A prompt that encourages users to take action, such as:
- “Download Now”
- “Sign Up Today”
- “Buy Now”
Effective CTAs guide visitors to the next step in the sales funnel.
Summary
Mastering these terms will help you navigate CPA marketing with confidence. If you’re ready to get started, sign up here for the Master Affiliate Network CPA network and begin your affiliate journey today!
Would you like me to help create a downloadable PDF version or a quick reference cheat sheet for this glossary?
4.1-mini
