CPA

( Cost-per-Action )

Services with subscriptions will give you the option of receiving money for each user that initially subscribes to a program. Online betting sites will give you a certain amount of money ( from $20-100+ ) for each person that signs up for the minimum affiliate requirements.

So, if the CPA ( which you can find in all terms & conditions ) is $50 per player who subscribes $50 into the website, if you attract 10 players, you will receive $500. Since the number is static, you can also tell how much you are making based on impressions and clicks:

50,000 impression = $100

50,000 = 124 clicks = .02 CTR

124 clicks = 10 players = $500

pay-per-impression ( for $100 package ) = $1 for 100

pay-per-click (ppc) = $4 and change

As you can see from above, it is really easy to analyze how well your ad campaigns will fare using the CPA system.

Affiliate Revenue Sharing

Revenue sharing, again using the example of a gambling site, would allow you to reap the benefits for money made by the company for the entire tenure of the customer’s interactions with the business. For betting or gambling sites, the companies make money off of the losses of the player. They usually also count bonuses and incentives as player gains, so you only make money when the companies makes money.

So if a player signs up, and loses $20 his first week, and $400 a month later, and the revenue sharing rate is 25%, you will make:

$420 x .25 = $105

CPA Vs. Rev Sharing: Which Should I Choose?

CPA are for people who are looking for straight-forward results and income that can come quickly. If you were to create a huge campaign to pick up customers for a specific company, you get rewarded the second the customers sign up for the programs. Like above, if you average getting a company 10 customers a month, you receive $500.

Unlike the cost-per-action method, you have to do a lot more work to retrieve funding in a revenue-share scenario. You could pick up the same 10 customers, but if they only spend a total of $1,200 between them, you only receive $300 under a 25% revenue share. What is worse, is that they might not spend any money at all, or spend very little over the course of many months.

Where revenue sharing is lucrative, is being able to build a base of customers who will spend over time. Picking up 50 customers in January may only net you $700, whereas you could make $2500 under the CPA system. But in June, after five months of attracting 20-40 customers a month, you have built a network of subscribers who are bringing in a great deal of money per month. It is even more attractive to have this base during industry buying peaks, such as the Super Bowl or March Madness for betting, and magazine subscriptions in the Fall and Winter.

So remember:

CPA

• Quick money
• straight-forward campaign analysis and tracking

Revenue Sharing

• Harder to run campaign with unknown prospects of gaining money from customers
• Money may be slower to come through
• long-term prospects are better and make more money
• for gambling sites, you can have a negative account if a customer wins a lot of money. Make sure you research specific rules for specific sites on the issue.