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.
A cost per lead (CPL) model represents a payment model for internet promotion. Affiliates are paid for each lead generated by the merchant.
In this cost per click model, affiliates earn money from each click on their banners, text links or other advertising materials.
Action commissions (CPA – commission per action)
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.