Cost per acquisition refers to performance-based marketing whereby an affiliate or publisher is paid a CPA payout for generating a sale on the merchant’s website. This is either a percentage of the sale amount (ex. 5-30%) or a flat amount payout ($20) on the sale regardless of purchase amount. Both have their pros and cons, but either way you are marketing on a pay-for-performance basis. The acquisition term refers to customer acquisition, which should be the focus on an ecommerce companies marketing strategy. Driving in new customers is always at the forefront of a merchant’s online strategy. The key for the merchant is to have a desirable product, a good converting website, and a substantial commission structure for the affiliate or publisher. If they have these 3 key factors they have a very good chance at producing tremendous revenue on a cost per acquisition basis. When merchants have the duck in a row, the affiliate can expect to generate good revenue with that merchant. Affiliate have no control of these factors, they can only do a great job at pre-selling the visitor. That all for now! If you need affiliate program management or internet marketing consulting, contact: evan@experienceadvertising.com.
