Comments on: CPA Does Not Pay The Bills http://www.allpeers.com/blog/2006/06/30/cpa-does-not-pay-the-bills/ The official AllPeers blog Sat, 06 Sep 2008 04:48:21 +0000 http://wordpress.org/?v=2.2 By: Mike Hogan http://www.allpeers.com/blog/2006/06/30/cpa-does-not-pay-the-bills/#comment-12945 Mike Hogan Sun, 02 Jul 2006 03:11:12 +0000 http://www.allpeers.com/blog/2006/06/30/cpa-does-not-pay-the-bills/#comment-12945 Matt, CPA is nothing new, as you mention with the web affiliate networks like Commission Junction, LinkShare, Shareasale, etc. With the AdWords CPC model vendors would expect to pay $.65 - $1.50 for a good keyword. They would then expect to get a 3 - 3.5% conversion rate (averages). So as a vendor, if you pay $1 per click and close 3%, you're paying $33 per sale. The website gets a share of this revenue, with Google keeping some. If the CPA earns $33 per sale, then it is a wash (assuming identical rev. share from Google on this model). This must be determined by looking at the average sale value and the percentage revenue share. If you operate a legit site that provides good content and encourages people to buy something of value (like people do with Amazon affiliate links) then you can do quite well (not as well as they can do with ZiXXo, but quite well ;)) Matt, CPA is nothing new, as you mention with the web affiliate networks like Commission Junction, LinkShare, Shareasale, etc. With the AdWords CPC model vendors would expect to pay $.65 - $1.50 for a good keyword. They would then expect to get a 3 - 3.5% conversion rate (averages). So as a vendor, if you pay $1 per click and close 3%, you’re paying $33 per sale. The website gets a share of this revenue, with Google keeping some. If the CPA earns $33 per sale, then it is a wash (assuming identical rev. share from Google on this model). This must be determined by looking at the average sale value and the percentage revenue share. If you operate a legit site that provides good content and encourages people to buy something of value (like people do with Amazon affiliate links) then you can do quite well (not as well as they can do with ZiXXo, but quite well ;))

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