What is CPA (Cost Per Action) affiliate marketing?

CPA, or Cost Per Action, affiliate marketing is a type of performance-based advertising model where affiliates are rewarded for specific actions taken by users they refer to a merchant's website. Unlike Cost Per Sale (CPS) affiliate marketing, where affiliates are paid only when a sale is made, CPA compensates affiliates for a broader range of actions, such as filling out a form, signing up for a trial, subscribing to a service, or downloading an app.

In CPA affiliate marketing, the actions that qualify for compensation are defined by the advertiser or merchant and can vary widely based on the specific goals of the marketing campaign. The affiliate earns a commission each time a referred user completes the specified action.

This model benefits both merchants and affiliates. Merchants only pay for tangible actions that contribute to their business objectives, such as lead generation or customer acquisition, rather than simply for clicks or impressions. Affiliates, meanwhile, have the flexibility to promote a variety of offers and can potentially earn commissions even if the referred user doesn't make a purchase.

CPA affiliate marketing requires careful targeting and optimization to drive actions that are valuable to the merchant. Successful affiliates often focus on understanding their audience and promoting offers that resonate with them, leading to higher conversion rates and greater earnings.