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Monday, October 23, 2006

The PPC vs CPA Debate

Just a quick note today to weigh in on a topic that has been pretty hot lately. The debate over PPC vs CPA is hardly new, but it seemed to take on a life of its own after the recent release of "Life After Adsense".

( Sidebar - If you haven't already read Life After Adsense, you can get the free report at http://www.lifeafteradsense.com )

For those of you who are not familiar with the abbreviations PPC and CPA:

PPC is short for Pay Per Click. When running a PPC campaign, the merchant pays for each clickthrough generated to his site. Think Google AdWords.

CPA stands for Cost Per Action or Cost Per Acquisition. In a CPA campaign the merchant pays for leads, not visitors. A visitor must perform some type of action, such as signing up for a newsletter or a free sample, before they are confirmed as leads.

As an affiliate, it's usually easier to make a few bucks with PPC. All you have to do to get paid is get someone to click on one of the PPC ads on your page. With CPA ads, they have to take a few extra steps before you'll get paid. Conversion rates will likely be lower, but the payout can be way, way higher. For this reason, I generally prefer CPA offers.

But I also use PPC ads such as Google Adsense on some of my sites. It's foolish to leave money on the table by ignoring PPC altogether.

A Small Experiment

I recently signed up for a CPA network called Direct Leads, I wanted to run a small test to see how I liked it. All I did was post a short message on one of my niche-themed sites with a link to a merchant that offers free samples of consumer products.

The merchant pays one dollar for each lead generated. In order to get the confirmed lead, I needed someone to click on my affiliate link, sign up to receive the free product sample, and agree to receive info on at least one more service.

In just a couple of days, I had generated $88 in commissions. While that may not seem like a lot, keep in mind that this was just a small-scale experiment. The blog I posted to does not get a ton of traffic yet and the commission was only $1 per lead. There are other products that pay much higher (as high as $150 per lead).

Just imagine what a high-traffic blog or website that gets lots of highly targeted visitors could do with a program that offered commissions of $18, $30, or even $150 per lead!

I encourage you to check out Direct Leads now and start bringing in those massive commissions. Just click the link below for more info.

DirectLeads - Make Money!

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