There are many payout models to choose from when you become an affiliate marketer, and each method has its own set of advantages and disadvantages. Two of the most common payout models are Cost per Lead (CPL) and Cost per Acquisition (CPA), but the difference is monumental. In CPL affiliate marketing, the affiliate is rewarded by the broker or affiliate network for each lead’s contact information. In other words, the more contacts he gets, the higher their commission is.

In CPA marketing, on the other hand, is where the affiliate is rewarded for their accumulated first-time deposits (FTDs). While it is more challenging, it does possess some major advantages over its top competitor.

So, how can you tell whether CPA is the payment model that will serve your business’ best interest?

Read the rest of the article below to find out!

• Are You up for the Challenge?
• Hardcore Proof of Your Success
• Bigger and Better Payouts

Are You up for the Challenge?

As we have mentioned earlier, acquiring CPA commissions is more challenging than CPL commissions, which is quite simple. In CPL, you only need to get the leads to fill out an online application where they hand over their contact information. Most will not ask for anything more than your full name, email address, and phone number.

As a CPA affiliate, you make your commissions by getting the leads to convert into active customers fully. This means they made their FTDs and sent their identifying documents to compliance. These extra steps take more time and convincing to get your leads to that stage. Despite this process being more difficult in comparison, successful and complete FTDs are harder to wave off when brokers need to pay up.

Hardcore Proof of Your Success

So, how good of a proof is a high CPA rate that your affiliate marketing traffic is the best thing since sliced bread?

Well, let’s look at it this way: How many times have you signed up for something for free only to forget about it 3 days later? Or even a week later?

When you don’t pay, it becomes much easier for things to become unaccounted for. It is no longer a priority because a more significant priority (like your spending) is not directly connected to it. Now let’s put the shoe on the other foot for a minute.

How many times have you heard leads swearing up and down that they have never clicked on your ads and signed up? Or that they signed by mistake – or our personal favorite – their contact information was stolen and used to register for your services?

Once you are a CPA affiliate, you eliminate most of the commonly used excuses. Come on, nobody forgets about opening an online trading portfolio with $1000 or more.

Also, the more FTDs you manage to get, the less likely anyone will have the audacity to criticize the integrity of your traffic sources.

Bigger and Better Payouts

Nothing feels better than seeing those numbers at the end of the month and knowing you have made it. Sure, it may have been a rough ride to the top but being paid on a CPA-based commission means your commissions are worth quite a chunk of change.

Though CPL affiliate marketers may have larger volumes, that does not necessarily mean they do not deal with heaps of issues come payday. They have to go toe-to-toe with their buyers to prove that the other party got their money’s worth. Oh, and this really is not a one-time type of thing – it recurs every month. The lack of this issue alone makes the CPA payout model superior to any other method out there.

Despite the smaller volume of relevant traffic in CPA affiliate marketing, brokers and networks are more likely to pay more for verified FTDs – especially if you are dealing with tiers 1 and 2 countries such as France, the United Kingdom, Australia, and Germany, for example.

Read more of our how-to and advanced expert-approved guides right here!