CPA Marketing: When an Organization Pays for Results, Not for Impressions

rabiarahi

Let's imagine a sales manager who consults customers and offers them goods. He does not purchase the products himself, but only attracts customers and receives a percentage of the profit. The CPA model works on approximately the same principle.

CPA is when an organization pays a counterparty for clients who have performed the required action. For example, filled out an application, made an order, or registered on a portal. The main advantage is that the company transfers money for a specific result, not for the number of impressions.

How an organization is promoted using the CPA model
The company outsources the promotion of its products to an intermediary. This could be a specialist or an organization that has a variety of customer acquisition techniques and uses them to increase sales.

The company may pay for such services in different ways, for example:

fixed amount - suitable when it is difficult to calculate how much each new attracted client will cost the company. For example, in the case of registrations on the site;
percentage of sales is the most popular calculation method. It is used when it is possible to calculate how much money each attracted client will bring to the organization. The target action will be considered the fact of purchase, from which the intermediary will receive a certain percentage.

Take online courses for free
and discover new opportunities
Start studying
Which companies exactly are suited to CPA marketing?
Most often, the CPA model is used by social media marketing service organizations that sell mass-market products. The principle is this: the easier it is to attract customers, the more productive the CPA will be.

Conditions without which CPA will not work:

The product is designed for B2C, that is, it is purchased by ordinary people, not other organizations.
The product is sold at a competitive price.
The organization can deliver goods to any point in the country or only to large cities, and also provide various bonuses.
The CPA model will not work effectively if the organization sells a complex product designed for a small audience. For example, medical equipment for private clinics. In this situation, the intermediary will not be able to attract the necessary buyers, since such devices are usually sold at exhibitions.

You can learn about other methods of promoting an organization on digital platforms at a free in-person training in Moscow, which is conducted by the educational project "Workshop of New Media". Tina Kandelaki, Sergey Minaev, Igor Mann, Sergey Novikov, Alexey Zharich and other industry leaders will share their experience.