What is cost per action?
Advertisers or merchants promote their products and services through affiliates. Affiliates are paid for some action. Cost per action is a prototype of payment for promoting a product. When a visitor buys something, registers on the website or signs up for a newsletter, advertisers have to pay for it. It is usual advertiser’s expense.
Frequently asked questions
How can I track my cost per action?
There are many ways to track cost per action such as setting up a system to track leads and conversions, analyzing the results of marketing campaigns, and constantly testing your campaigns.
What's a good cost per action?
Generally speaking, a good cost per action would be anything under $50. However, this can still be considered expensive depending on the item being purchased.
How can I calculate my cost per action?
To calculate your cost per action, divide the total cost of the campaign by the number of actions taken.
Action commissions (CPA – commission per action)
Action commissions are a type of commission structure in affiliate marketing where an affiliate marketer earns a commission only when a specific action is taken by a user that was referred by the affiliate. To activate the Action commissions feature in Post Affiliate Pro, you need to go to your Merchant panel > Configuration > Features, and click on the ‘Activate‘ button next to action commissions. There are no limits to the number of action commissions you can create in each campaign, so it is possible to track virtually almost all visitor movements if you insert a piece of JavaScript code or hidden image (pixel) in the pages (on which the particular action is executed). Commission rates are crucial for affiliates as they impact how much money they can earn, and higher rates mean more earnings and incentivize promotions. Post Affiliate Pro is an ideal solution for every side of affiliate marketing.
Cost per sale (CPS) is a payment method for promoting products, services or websites on the Internet. Merchants pay their affiliates for every sale, reducing vulnerability to fraud. CPS can be calculated by dividing costs by total sales or by dividing cost per click by conversion rate. A good cost per sale varies depending on the product or service offered, industry and other factors. It should aim to be lower than the average order value.
