CPA EXPLOSION
CPA EXPLOSION – Creating Your Relationship Looking back at the screenshot on the previous page, you will note that over to the far-right hand side, it suggests that I have ‘No Relationship’ with either of the lending institutions that we have been looking at.
What this means is that I have not applied to be an advertiser for either of these organizations. By definition, therefore, if I want to advertise the products or services of CitiFinancial or Structured Settlement Alliance, then I must apply to each company via my membership of the Commission Junction network in order to be able to do so.
When you make such an application to an advertiser that you find attractive, this application will usually elicit one of two responses.
In a limited number of situations where the advertiser is looking for large visitors and is not particularly concerned with where those visitors come from then they will accept your application immediately.
This is, however, only likely to happen with companies who are paying an affiliate or website publisher exclusively for sales generated, and would tend to be companies whose products are likely to be of broadly general interest.
For example, companies selling portable MP3 devices are going to be more than happy to attract customers from any kind of website or blog, and would therefore be quite likely to immediately accept an affiliate application.
The other (far more common) advertiser response, however, is that the advertiser wants to vet your website before arriving at any decision on whether they are willing to work with you or not.
By extension, therefore, you must have already created the blog or website on which you want to place the advertising and it must be of the highest quality if you want to attract top name advertisers.
For example, whilst in theory there is nothing wrong with this idea, it is extremely unlikely that a brand-new financial services blog with just two or three postings is likely to attract an advertiser of the caliber of CitiFinancial.
In the same way that you approach a company like this because you know that carrying their advertising will immediately enhance your brand image, they know that their own image can only be protected by being selective about the sites where their advertising appears.
So, you must appreciate that adding high-quality CPA adverts to your site is not the same as simply joining AdSense and then letting Google do all the work for you.
If you want to attract the highest quality, best known brand names to advertise on your site, then you must make sure that your site is ready to accept such advertising, and that it will sell itself to those premium level advertisers.
Which Is Working Best?
As demonstrated already, the more well-known an advertiser is, the less they are likely to pay you for carrying out their advertising. In contrast, you have already seen that less well-known advertisers are generally willing to pay considerably more.
However, the vast majority of smart consumers will not buy a product or service simply because of the brand name company that offers it. And, at least to some extent, the decision of such a consumer to click through on an advert to look at an advertiser’s website will be based upon the effectiveness of the advert that is shown on your site.
Unlike PPC advertising, the creation of the advert that is designed to draw the click from the potential customer has nothing whatsoever to do with you. The advert is entirely designed and created by the advertiser and therefore, you have no control over how effective this advert is likely to be.
So, there are effectively two variables that will dictate how much money you can earn as a CPA publisher or affiliate.
The name or image of the advertiser is important, and so is the effectiveness and impact of the adverts that they place on your website or blog.
The key to profitable CPA advertising is therefore exactly the same as it is for so many types of online marketing, sales and advertising activities. That is, you will maximize your CPA earnings by constantly tracking, testing and improving.
So, as an example, let us go back to the CitiFinancial and Structured Settlement Alliance scenario. What you know about the situation is that the CitiFinancial brand-name and image is likely to have a far more powerful and immediate impact on your site visitor than that of their rival.
What you do not know, however, is how good their advertising is going to be and how attractive their on-site offers are. For example, you do not know what they will offer a potential new customer in order to generate a lead, you have no idea what mortgage terms they will give a new customer who actually wishes to apply for a loan, and so on.
It may indeed be that whilst Structured Settlement Alliance do not have the same internationally recognized brand name as their rivals, they may create far more effective advertising copy, or perhaps offer far greater incentives in return for new customers being willing to complete an online form, for example.
In truth, the only way that you can ever know which adverts you should carry in order to generate maximum profits is to track and test live advertising campaigns that are being presented through your site.
So, let’s imagine that you wish to make a back-to-back comparison of these two advertisers in order to ascertain who will make the most profits for you.
The first thing you must look at is the ‘Terms of Service’ of any individual advertisers who you are planning to compare in this way. It may well be that the two advertisers that you plan to compare include a specific clause in their Terms of Service that prohibits you from running advertising from their direct competitors on the same individual webpages, or perhaps even on the same website.
In this situation, if it is permissible, you might choose to carry different advertisers on different web pages, but this would not necessarily constitute a truly accurate comparison unless both of the web pages in question enjoyed exactly the same number of visitors.
Even then, you could not guarantee that the visitors who saw the different ads would be directly comparable with one another, as it may be that the visitors who saw ‘advert A” are far more receptive to mortgage loan advertising than the people who viewed ‘advert B’.
That being said, the main point to take from this is that you must read the Terms of Service to check whether you are allowed to run two adverts from direct competitors on the same webpage.
If you are, then this is the ideal situation in which to track and test whose advertising makes the most money for you. And this is a remarkably easy thing to do as well.
Simply decide upon a number of times that your webpage should be shown and then see how many sales this has generated from the two advertisers concerned.
When using PPC advertising, it is generally recommended that in order to have any meaningful statistics, you will need at least 100 visitors to your site.
However, we have already established that the meaningful response rates from CPA advertising are always going to be a lot lower than could be expected from a PPC campaign.
Thus, it would follow that 100 visitors to your site would be nowhere near enough to validate such a back-to-back test if you’re using CPA advertising.
I would, therefore, recommend that you should drive the least 300 visitors to your site before you start looking at your sales figures.
You can track visitor numbers to your site either using the statistics programs that will be probably be built into your web hosting account if you have your own domain name (if you are using a ‘cpanel’, look for something like ‘Awstats’ or ‘Webalizer’) or set yourself up with a free account at Google Analytics or Stats Counter.
It is important to understand that the key to generating maximum revenues from the advertising that you show is not necessarily dealing with CPA advertisers who pay the highest commission levels. It is all about finding and using advertising that works best on your site, and you can only establish this by looking at the actual achieved results.
You will, however, note that I suggested that you should be tracking, testing and improving, and we have only dealt with the first two of these so far. You need to be aware that even though you cannot control the content and the design of the advertising shown on your site, you are nevertheless responsible for making sure that your own site is as attractive and inviting to visitors as much as possible.
So, you should continually strive to improve your website by regularly updating your content, changing graphics and images on a regular basis and so on, in an effort to keep your visitors returning to your site as often as possible.
Statistics from many studies indicate that, before anybody makes an online buying decision, they must see the same promotional or advertising materials at least seven times. There is no reason to assume that someone viewing the CPA advert does not fit the same pattern.
In other words, the more times you can show the same advert to the same website visitor, the greater your chances will be that the visitor will eventually take notice of the advert, and click through to discover more about what is behind it.
It therefore follows that you must do everything that you possibly can to keep visitors coming back to your site as regularly as possible, and that, in order to do this, you must make sure that your site is constantly updated, changed and above all improved.
Now, of course, no website owner or blog creator is ever going to knowingly reduce the quality of their site, but it does not necessarily follow that everything that you believe to be an improvement actually makes your site or blog a better experience for your visitors.
So, whenever you do update and ‘improve’ your site, you must once again keep a close eye on your statistics to discover whether your changes result in better sales figures or not.
It would even be possible to ‘back-to-back’ test any changes you have made by creating two separate pages, one of the old-style, and one that incorporates all the changes you have made.
Measuring the number of visitors set against sales achieved or leads generated whilst running a test such as this would give you an indication of whether your improvements have been effective or not.
Regards, Coyalita
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