Taking your exciting idea and building a CPA offer can be invigorating, frustrating, and lucrative all at the same time.
Here at Herbal Groups, Inc. we’re pitched offers daily that clients or partners want to promote in the natural product/herbal supplement CPA space. Considering that the CPA market has literally thousands of offers we have to pick and choose which offers are viable for testing. As an advertiser there are many risks to be aware of that most affiliates and networks are probably not aware of.
First off the advertiser has to deal with the actual business end of the deal such as merchant accounts, chargebacks, returns, processing, customer service, hosting, bandwidth, and other overhead items. These items can be outsourced but you’re not going to have as much control. Keeping the vital components inhouse can protect you and your business.Negotiating with the CPA networks is also an art in itself. Plan on many phone calls, emails, and faxes of documents to finalize a deal.
Building a product from scratch is costly and filled with hurdles. Labelling, legal requirements, and manufacturing all must be considered carefully. The financial factors that make up a CPA offer, from the initial payout to the affiliate and commision paid to networks, is carefully built into the final cost to the consumer. It’s the same basic model for full-priced offers or continuity offers (free trials). For example, you may have the greatest widget in the world but once you launch your campaign your cost of goods, commisions, and cost of doing business must be paid first before you’ll recoup any money. If you have the cash on hand to cover the costs and commissions you can expect to start seeing your investment paid back quickly on full-priced offers or within a few weeks for free trials campaigns that succeed. It’s vitally important to maintain communication with all parties involved. Networks can be incredibly great sources of quality traffic or they can cause tremendous headaches if affiliates are not verified and or allowed to run the offer in unapproved channels. As an advertiser you must watch for potential fraud and react quickly on a daily basis.
It’s a gamble and it requires careful crafting of the marketing pictch to produce a successful offer. Profit margins vary wildly but with the right product, productive networks/affiliates, and the right pitch you can make the CPA offer work. While I have not covered every single component of building a successful CPA offer I hope this sheds light on the nature of performance marketing from the advertisers point of view. Stick with your ideas and they can become a reality.
By: Paul Avila
Becky is the Senior Content Marketing Manager at TUNE. Before TUNE, she led a variety of marketing and communications projects at San Francisco startups. Becky received her bachelor's degree in English from Wake Forest University. After living nearly a decade in San Francisco and Seattle, she has returned to her home of Charleston, SC, where you can find her enjoying the sun and salt water with her family.