The Most Active and Friendliest
Affiliate Marketing Community Online!

“Propeller”/  MyBid

CPA VS CPS VS CPL

flamingo

New Member
affiliate
Firstly i would like some more clarification about the difference between CPL and CPA. To my understanding CPL is referring to the commissions paid per lead. As in a customer merely signing up with an email would be enough to earn a commission. And CPA is referring to the acquisition of a customer which can either mean signing up OR making a sale.
Secondly, I would like yalls opinions on which one would be more suitable for a beginner. I am thinking about joining clickbank, which I believe only offers CPS. Which would mean I would need to actually make a sale before earning a commission. This seems like the hardest way to make money out of all the options. But clickbank seems to accept new affiliates pretty easily as well as pay out frequently and reliably. Is clickbanks reputation worth going for the harder to earn commission?
 
Are you trying to sell stones you picked up on the roadside or nuggets of gold? I don't buy 99% of the things offered to me for sale but I may buy 1% of what I look at. Then they say there is a seat for every ass too ...

  • CPA is cost per ACTION
  • Cost per Acquisition is an accounting analysis and has to be averaged or calculated to the median over a time period and then allocated to the customer category.
  • PPS is the term we used for compensation for a customer acquisition (a unique individual new customer) the formula to find the fair reward is ether based on past customer performance or a more seat of the pants pro forma based on some known average CL (customer lifetime) GPR (gross profit).
  • CPS is a percentage paid for a referral sale to any customer regardless of whither that customer is a new or repeat customer.
  • CPL is cost per lead --what qualifies as a lead that will be paid for varies a lot --read the agreement carefully.

How many can you sell or qualify and at what compensation --is that effort a good investment of your time spent?

You cannot compare mortgage leads and plumbing leads on a per lead basis. More people need a plumber than to new mortgage. A plumbing job might be $500 to $10,000 while a new mortgage might be several hundred thousands of dollars.

How motivated is the buyer of a plumbing job? If the shit don't flow downhill then that buyer is very motivated. You need a mortgage loan to get what you think you want but usually when you flush it goes down the drain. So what is easier to sell and what do you make more money for selling? --More Often

Try different affiliate stuff and measure your reward by EPC (earning per click) or gross profit by the month.

In any case, read the fine print in any agreement; as many interchangeably use these terms with their own interpretation. They are either misinformed or just make shit up to suit them (and mislead you to their advantage).
 
Are you trying to sell stones you picked up on the roadside or nuggets of gold? I don't buy 99% of the things offered to me for sale but I may buy 1% of what I look at. Then they say there is a seat for every ass too ...

  • CPA is cost per ACTION
  • Cost per Acquisition is an accounting analysis and has to be averaged or calculated to the median over a time period and then allocated to the customer category.
  • PPS is the term we used for compensation for a customer acquisition (a unique individual new customer) the formula to find the fair reward is ether based on past customer performance or a more seat of the pants pro forma based on some known average CL (customer lifetime) GPR (gross profit).
  • CPS is a percentage paid for a referral sale to any customer regardless of whither that customer is a new or repeat customer.
  • CPL is cost per lead --what qualifies as a lead that will be paid for varies a lot --read the agreement carefully.

How many can you sell or qualify and at what compensation --is that effort a good investment of your time spent?

You cannot compare mortgage leads and plumbing leads on a per lead basis. More people need a plumber than to new mortgage. A plumbing job might be $500 to $10,000 while a new mortgage might be several hundred thousands of dollars.

How motivated is the buyer of a plumbing job? If the shit don't flow downhill then that buyer is very motivated. You need a mortgage loan to get what you think you want but usually when you flush it goes down the drain. So what is easier to sell and what do you make more money for selling? --More Often

Try different affiliate stuff and measure your reward by EPC (earning per click) or gross profit by the month.

In any case, read the fine print in any agreement; as many interchangeably use these terms with their own interpretation. They are either misinformed or just make shit up to suit them (and mislead you to their advantage).
Thanks Graybeard. That helped a lot. I think I want to start off with something that would be as "easy" as possible to earn a commission. Even if it's only a couple cents. I just want to get a little proof of concept before I move on to more profitable offers that could be harder to earn commission. I think il try out some CPL offers to start off. Il make sure to read that fine print!
 
Firstly i would like some more clarification about the difference between CPL and CPA. To my understanding CPL is referring to the commissions paid per lead. As in a customer merely signing up with an email would be enough to earn a commission. And CPA is referring to the acquisition of a customer which can either mean signing up OR making a sale.
Secondly, I would like yalls opinions on which one would be more suitable for a beginner. I am thinking about joining clickbank, which I believe only offers CPS. Which would mean I would need to actually make a sale before earning a commission. This seems like the hardest way to make money out of all the options. But clickbank seems to accept new affiliates pretty easily as well as pay out frequently and reliably. Is clickbanks reputation worth going for the harder to earn commission?
CPA can be referred as a main category like CPC, CPM and CPV.
Sales, lead, install, order or engagement are all types of acquisitions.
So this makes CPA a main one.
Please note that the easiest flow you pick, the more fraud protection procedures you will go under.
Harder flows are already eliminating fake users with several easy flows in between.
 
And you go where the fit is the best. If you have a sales background you might want to be paid on a COST PER CALL basis because you know by listening to the recordings you can determine exactly what's going on. If you are more of a techie with an SEO back ground - standard affiliate programs with banner tracking may be best.

We have some sharrrrrrrrrrpe sales people who serve as our affiliates/pubs
 
banners
Back