Success

Affiliate marketing

How to Make Money with a Cost-Per-Action Network

Jacquelyn Dunham

13 min read

Jul 25, 2024

How often have you promoted a product only to see minimal returns? Struggling to convert traffic into actual revenue? Or frustrated by traditional affiliate models and looking for a result-driven approach?

CPA affiliate marketing can be a game-changer for you. Instead of relying on sales to earn commissions, CPA lets you get paid for specific actions, like sign-ups, free trials, sales, or downloads—which means quicker, more frequent earnings.

It is incredibly lucrative for SaaS products that thrive on recurring subscription models, making it easier to convert visitors.

Let's explore how to set up a CPA affiliate marketing system, choose the right products, and scale your campaigns for consistent revenue. Turn your efforts into profit and start making money!

Understanding CPA Affiliate Marketing

Cost-per-action (CPA) marketing is a performance-based model in which affiliates earn a commission each time a referred user completes a specific action. These actions can range from signing up for a newsletter to filling out a form, downloading an app, or starting a free trial.

CPA stands out from cost-per-sale (CPS) models, where affiliates earn only when an actual purchase is made. It's attractive because there is a low conversion threshold, increasing the chances of earning commissions.

Types of CPA Marketing Models

• Single Action CPA: Affiliates earn when a single, predefined action is completed, like a sign-up or form submission.
• Multi-Step CPA: These are more complex models in which users need to complete a sequence of actions, such as signing up and making a purchase, for the affiliate to earn a commission.
• Lead Generation CPA: A specific type of CPA where affiliates are rewarded for generating leads by driving users to fill out forms or register for trials.

Benefits of CPA Marketing

CPA marketing’s simplicity, combined with the inherent appeal of SaaS products, makes it a powerful strategy for affiliate marketers looking for a low-risk, high-reward approach to generating income. The benefits are not limited to:

• Higher Conversion Rates: Users are more likely to complete simple actions like sign-ups or downloads, leading to more conversions and commissions.
• Earnings Without Sales: Affiliates earn for specific actions, removing the need to drive direct customer purchases.
• Predictable Income: CPA models reduce the risk of lost sales, providing a more consistent income stream based on actions.
• Diverse Traffic Sources: Affiliates can promote CPA offers through various channels like blogs, social media, email campaigns, and paid ads, reaching a wide audience.
• Scalability: Successful CPA campaigns can be easily scaled through increased traffic and refined strategies for greater long-term earnings.

How to Earn With CPA Affiliate Programs?

To start earning with CPA and digital marketing, you must choose the right CPA networks, target the right audience, and create unique campaigns that drive results.

1. Choosing the Right CPA Network

First, you need to focus on CPA affiliate networks that offer low-barrier actions to improve your chances of converting leads into paying customers. Look for reputable networks like MaxBounty or PeerFly that offer high-quality SaaS offers and have a proven track record of timely payments and reliable support.

You can also opt for programs that specialize in SaaS products, with competitive commissions and a robust analytics dashboard.

• Evaluate Program Features: Analyze key features like commission structure, cookie duration, and payout methods. Some programs offer recurring commissions, which can generate long-term earnings.
• Check for Affiliate Support: Choose programs that provide robust affiliate support, such as marketing resources, detailed analytics, and dedicated account managers to help you optimize your campaigns.
• Consider Niche Relevance: Select networks that align with your target audience's interests. If you have an audience interested in communication tools or productivity software, programs like LiveChat’s Partner Program are ideal.
• Explore High-Converting Offers: Ensure the program offers products with proven high-conversion actions. This makes it easier for affiliates to generate commissions.

2. Researching Products That Convert

Choosing the right SaaS products is essential for success in CPA marketing. Look for networks that not only attract users but also retain them over time. Key metrics to consider when researching include:

• Low Churn Rates: Products with low customer churn (cancellation) rates indicate customer satisfaction and long-term value, making them more attractive for promotion through CPA.
• High Customer Satisfaction: SaaS tools with positive reviews and high user engagement tend to convert better. Look for products with strong user communities or customer testimonials.
• Trial-to-Paid Conversion Rates: If a SaaS product offers a free trial, investigate the percentage of trial users who convert into paying customers. Higher conversion rates indicate a better product-market fit.

You should pick products that match your audience's needs and interests. For example, if your audience consists of small business owners, focus on SaaS tools that solve common pain points like customer support (LiveChat), productivity (Asana), or accounting (QuickBooks). It'll increase your chances of earning commissions.

3. Building a Targeted Audience

A key element of success in your CPA marketing campaign is having a targeted audience that is likely to engage with the products you promote. Here's how to build that audience:

• Niche Marketing: Focus on a specific niche to attract users who are more likely to convert. For example, if you’re promoting communication tools like LiveChat or ChatBot, target businesses that need customer support solutions.Define your niche based on industry, business size, or pain points.
• Build content around this niche to establish yourself as an authority in that space.
• Using Blogs, Social Media, and Email Marketing:Blogging: Create content around SaaS products, explaining their benefits and offering comparisons or tutorials. This helps attract organic traffic through search engines (SEO).
• Social Media: Engage your audience on platforms where they spend their time, such as LinkedIn for B2B SaaS products or Facebook groups for small business owners.
• Email Marketing: Build an email list with targeted prospects. Share case studies, tips, and exclusive offers through email campaigns making it easier to convert users.

For example, create a blog that focuses on productivity tools for small businesses. Your site can review and compare different SaaS products, such as project management or communication tools, and include affiliate links to sign up for free trials. You can use a combination of SEO, social media, and email marketing to drive traffic to its content, resulting in higher conversion rates for CPA offers.

4. Crafting CPA Marketing Campaigns

Creating a successful CPA campaign depends heavily on how well you can communicate the benefits of the SaaS product you’re promoting. Here's how to craft CPA affiliate marketing campaigns:

• Write Persuasive Copy:
  Focus on the key benefits that the SaaS product offers and highlight the low-risk action (e.g., signing up for a free trial). Address pain points that your audience faces and position the product as the solution.Example: "Struggling to manage customer support? Try LiveChat's free trial to boost your team's productivity without upfront costs."
• Design Landing Pages that Convert:
  Your landing page should be focused on the CPA action you want users to take, whether it’s signing up for a trial or downloading a demo. Keep the page simple, with a clear headline, concise copy, and a prominent call-to-action (CTA) button. Avoid distractions that could divert the user from completing the action.
• A/B Testing:
  Experiment with different headlines, CTA button placements, and copy variations to see what converts best. A/B testing can help you fine-tune your campaigns by identifying which elements resonate most with your audience.

5. Utilizing Multiple Traffic Sources

Maximizing traffic to your CPA affiliate network is essential to increase conversions. Here’s how to use your traffic sources effectively:

• Paid Ads (Google Ads, Facebook Ads):
  Paid advertising allows you to reach a highly targeted audience quickly. Google Ads and Facebook Ads enable you to create targeted campaigns based on demographics, interests, and behavior.For SaaS products like LiveChat, you can run ads that specifically target businesses looking for customer support solutions or productivity tools.
• Use retargeting to show ads to users who have previously visited your website or interacted with your content but didn’t complete the action.
• Organic Traffic (SEO, Content Marketing, Social Media):
  Organic website traffic can provide a steady stream of leads without ongoing ad spend.SEO: Optimize your blog posts and landing pages for search engines by using relevant keywords, writing high-quality content, and building backlinks. Over time, you’ll rank higher in search results, attracting more users interested in SaaS products.
• Content Marketing: Create helpful resources like how-to guides, tutorials, and reviews that showcase the product in action.
• Social Media Engagement: Share your content on social platforms to engage with your audience and drive traffic to your CPA offers. Participate in online communities or groups relevant to your niche to build relationships and attract potential users.

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Optimizing and Scaling Your CPA Campaigns

Opt for a data-driven approach to scale your CPA marketing model. Do gradual investment in paid traffic, and build lasting relationships with your audience. The key is to start small, focus on what works, and build partnerships that benefit both you and the affiliate network in the long run.

1. Analyzing and Tracking Performance

Use analytics to identify what’s working, what needs improvement, and where to invest more resources. You can then easily track and analyze your CPA offers.

• Key Performance Indicators (KPIs) to Monitor:Conversion Rate: This measures the percentage of users who complete the desired action (e.g., signing up for a free trial). A higher conversion rate means your campaigns are effectively reaching and convincing your target audience.
• Cost Per Acquisition (CPA): This metric shows how much you’re spending to acquire each customer or lead. Keeping this cost low while maintaining high conversion rates is key to maximizing profits.
• Return on Investment (ROI): ROI measures how much profit you’re making from your CPA campaigns compared to how much you’re spending. A high ROI indicates that your campaigns are performing well and yielding significant returns.

Track your affiliate links and conversions through tools like Google Analytics or LinkTrackr. They allow you to track user behavior, conversions, and traffic sources. Also, you can measure the performance of individual campaigns and get real-time data on conversions, traffic sources, and user engagement.

By regularly analyzing campaign metrics, CPA affiliate marketers can identify trends, optimize ad placements, and adjust digital marketing strategies to improve performance.

2. Scaling CPA Campaigns with Paid Traffic

Once your CPA campaigns begin delivering consistent results, it’s time to scale up and increase your earnings potential. Scaling with paid traffic is a strategic way to grow your campaigns, but it must be done methodically to ensure profitability.

• Gradually Increase Ad Spend: When scaling CPA campaigns, the key is to increase your ad budget as your campaigns prove progressively successful. Start with a modest budget, monitor performance, and only increase your spending when you see positive ROI.Example: If you’re running Facebook Ads to promote a product, start with a small daily budget. Once you see that your conversion rate and ROI are consistently high, gradually increase your budget by 10-20% to capture more leads without overspending.
• Retargeting to Re-Engage Potential Leads: Retargeting is a powerful tool for CPA campaigns, allowing you to re-engage users who have shown interest but didn’t complete the desired action. By using retargeting, you can display ads to users who visited your landing page, clicked on your offer, or abandoned their sign-up midway.Example: If a user visits your landing page for a SaaS free trial but leaves without signing up, you can use retargeting ads to remind them of the offer, showing a new incentive like an extended trial or bonus feature.

3. Building Long-Term Relationships

Establishing strong, long-term relationships with SaaS networks can significantly benefit your affiliate marketing efforts. As you consistently generate leads and conversions, SaaS companies are more likely to offer better deals and incentives to keep you as a top-performing affiliate.

As your performance improves, you may be able to negotiate higher commission rates or exclusive offers. This can significantly increase your earnings over time. Also, you may get exclusive discounts for users you refer, which can increase your conversion rates.

Longer cookie durations are another benefit, allowing you to earn commissions even if users convert days or weeks after clicking your affiliate link.

Mistakes to Avoid in CPA Affiliate Marketing

Here are some mistakes to avoid to create sustainable, compliant CPA campaigns that build trust with your audience and generate long-term profits.

1. Choosing the Wrong CPA Affiliate Program

Only select offers that resonate with your target audience, as promoting irrelevant products can result in low conversions, wasted ad spending, and a loss of credibility. You need to avoid:

• Selecting offers based on high payouts rather than relevance.
• Promoting SaaS products without considering whether your audience will benefit from them.
• Failing to assess the conversion potential of the CPA offer (e.g., free trials, easy sign-ups).

2. Focusing Only on Short-Term Gains

Another pitfall is focusing solely on short-term profits without considering long-term sustainability. Quick wins tempt many affiliates, but building a successful CPA marketing business requires patience and a focus on recurring commissions.

Long-term thinking matters because:

• CPA offers tied to recurring revenue models (like SaaS subscriptions) provide continuous earnings even after the initial action.
• Building a loyal audience by offering value ensures repeat conversions and long-term success.
• Short-term gains can lead to burnout if you’re constantly chasing one-time commissions.

3. Ignoring Compliance and Terms of Service

Failing to follow the terms of service and compliance rules set by CPA networks and affiliate programs can lead to severe consequences, including account suspension or termination. It’s essential to understand and adhere to these guidelines to maintain a healthy affiliate marketing business.

• Common Compliance Pitfalls:Ad Fraud: Engaging in tactics like fake clicks, spamming, or misleading ads can result in penalties or losing your affiliate account.
• Non-Compliant Marketing: Running campaigns that violate advertising rules (such as promoting offers through prohibited channels) can lead to account suspension.
• Transparency Issues: Failing to disclose affiliate links properly can harm your credibility and result in legal issues.

4. Neglecting Traffic Diversification

Relying on only one traffic source, such as Google Ads or Facebook Ads, is another mistake affiliates often make. This can be risky, as algorithm changes or policy updates can drastically impact your traffic flow and revenue.

• Using multiple traffic channels (SEO, email marketing, social media) reduces the risk of losing all traffic from one platform.
• Diversification helps you reach a broader audience and test different customer acquisition strategies.

5. Not Testing and Optimizing Campaigns

Relying on a single approach without testing and optimizing can limit the effectiveness of your CPA campaigns. Many affiliates fail to run A/B tests on their landing pages, ads, and offers, resulting in missed opportunities for improvement.

• Why Testing is Crucial:A/B testing allows you to identify the most effective strategies for higher conversions.
• Small tweaks in headlines, CTA buttons, or ad copy can significantly boost performance.

Why Choose LiveChat's Partner Program for CPA Marketing?

LiveChat’s Partner Program stands out due to its competitive commission rates, easy-to-convert products, and extended cookie duration.

Affiliates can earn up to 22% commission on sales, with a 120-day cookie that ensures you receive credit for referrals up to four months after the initial click.

Products like LiveChat, ChatBot, and HelpDesk are known for their high conversion rates, thanks to free trials and affordable pricing.

You can benefit from a robust dashboard where you can track performance metrics, test different campaigns, and monitor earnings. The comprehensive support ensures that affiliates have everything they need to optimize their campaigns and maximize conversions.

A standout example of the program’s success is an affiliate who has earned over $4,000,000 to date. You can also utilize the available marketing assets and custom affiliate links and consistently promote the value of LiveChat’s communication tools!

Conclusion

Cost-per-action (CPA) affiliate marketing presents a lucrative opportunity, especially when promoting SaaS products like LiveChat. With CPA, affiliates get paid for specific actions, making it easier to generate income without requiring immediate conversions.

SaaS products, known for their low-barrier offers and recurring revenue models, are particularly well-suited for this approach. They offer ongoing earning potential as users convert to paying customers.

However, you need to stay consistent in promoting relevant products, scaling efforts wisely by increasing ad spend gradually. Also, track performance continuously to maximizing your earnings.

To start your CPA journey, consider joining the LiveChat Partner Program. With its competitive commissions, extensive marketing resources, and strong affiliate support, you can get a solid foundation to excel in the SaaS space.

Don’t miss out on this opportunity to utilize high-converting products and enhance your income potential. Sign up now!