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Old 01-09-2011, 07:34 AM   #1
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Default What are the risks involved with CPA?

Hi,
I'm new to CPA, and I would like to know what are the risks involved with CPA?

Since I'm still not joined any network I'm interested how network work and will they pay for every campaign?

Also I'm interested in average how big is the conversion rate?

Any help will be highly appreciated.
Thank you.

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Old 01-09-2011, 10:32 AM   #2
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Default Re: What are the risks involved with CPA?

Quote:
Originally Posted by lifeofadev View Post
Hi,
I'm new to CPA, and I would like to know what are the risks involved with CPA?

Since I'm still not joined any network I'm interested how network work and will they pay for every campaign?

Also I'm interested in average how big is the conversion rate?

Any help will be highly appreciated.
Thank you.
It's totally FREE to apply for almost all cpa network. One thing to keep in mind though... only work with trusted network like ewanetwork, neverblue, cpatrend, envyusmedia, and peerfly etc.

The conversion rate is totally different for every offer and niche.

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Old 01-09-2011, 11:10 AM   #3
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Default Re: What are the risks involved with CPA?

Thank you for you answer.

While searching for answers about what cpa is and how you can profit from it I understand that you must use some payed method like PPC to attract traffic to your lending page with the CPA offer. Also it comes to my attention that some of the network will not pay you if the conversion rate of the whole campaign is small.

So that is actually what I would like to know, how much "trusted" are this networks? Because if they don't pay you and you spend money for the promotion, even if it is some bucks, you lose, right?

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Old 01-09-2011, 12:51 PM   #4
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Default Re: What are the risks involved with CPA?

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Originally Posted by lifeofadev View Post
Hi,
I'm new to CPA, and I would like to know what are the risks involved with CPA?
Losing money.

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Old 01-10-2011, 02:49 AM   #5
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Default Re: What are the risks involved with CPA?

Opps .. You are new ! There is huge risk involve in cpamarketing if you are new in industry .You should read some ebooks "How to start ? " . You also need to get in touch with some big warriors . They know "how to teach ?"


best of luck !
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Old 01-10-2011, 04:51 AM   #6
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Default Re: What are the risks involved with CPA?

Quote:
Originally Posted by lifeofadev View Post
Hi,
I'm new to CPA, and I would like to know what are the risks involved with CPA?

Since I'm still not joined any network I'm interested how network work and will they pay for every campaign?

Also I'm interested in average how big is the conversion rate?

Any help will be highly appreciated.
Thank you.
Risks are simple = you can lose your shirt. Its like saying "what are the risks of gambling or investing into stocks". What you wanna do is take CALCULATED risks ... which means have some knowledge and experience behind you before you start spending loads of money.

Any questions just let me know
Nick

Read my incredible story: www.affiliatechamp.co.uk
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Old 01-10-2011, 08:36 AM   #7
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Default Re: What are the risks involved with CPA?

Quote:
Originally Posted by lifeofadev View Post
Hi,
I'm new to CPA, and I would like to know what are the risks involved with CPA?

Since I'm still not joined any network I'm interested how network work and will they pay for every campaign?

Also I'm interested in average how big is the conversion rate?

Any help will be highly appreciated.
Thank you.


The risks...

If you are paying for stuff like traffic, software, etc then clearly there is a monetary risk. In truth, you can do everything without ever riskign a penny though, that's what I find fascinating.

Risking time. Of course you can put time in without a return. Everybody's time is worth something, so if you walk away without a bigger bank account, than you lost time. We all have limited time on this planet.

Legal. Like any business, depending on what you do and how you do it, you always run the risk of people/entities suing you. It's the nature of any business


Networks...

They work by giving you access to offers and then paying you commissions. That's a very simple broad overview of course but they are just there as middle men to facilitate the interaction between publishers and advertisers.

Will they pay for all your leads? Hopefully. If you are doing everything within the rules and using a good network, then almost always they will. If you are breaking the rules, they may not.


Conversions...

It all depends on what you are doing. Conversion rates can be extremely high above 50% if you are doing a squeeze page or have extremely targeted traffic to a high converting low payout offer. Conversion rates can be below 1% as well. Neither is better, its really about margin and return, not conversion rates.

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Old 01-10-2011, 08:54 AM   #8
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Default Re: What are the risks involved with CPA?

What kenster said.

But seriously, I think it is based on how you promote the CPA offer. If you use paid traffic, you could potentially increasing the risk of losing money. This depends on the conversion and payout of the offer.

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Old 01-10-2011, 12:40 PM   #9
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Default Re: What are the risks involved with CPA?

Quote:
Originally Posted by Kenster View Post
The risks...

If you are paying for stuff like traffic, software, etc then clearly there is a monetary risk. In truth, you can do everything without ever riskign a penny though, that's what I find fascinating.

Risking time. Of course you can put time in without a return. Everybody's time is worth something, so if you walk away without a bigger bank account, than you lost time. We all have limited time on this planet.

Legal. Like any business, depending on what you do and how you do it, you always run the risk of people/entities suing you. It's the nature of any business


Networks...

They work by giving you access to offers and then paying you commissions. That's a very simple broad overview of course but they are just there as middle men to facilitate the interaction between publishers and advertisers.

Will they pay for all your leads? Hopefully. If you are doing everything within the rules and using a good network, then almost always they will. If you are breaking the rules, they may not.


Conversions...

It all depends on what you are doing. Conversion rates can be extremely high above 50% if you are doing a squeeze page or have extremely targeted traffic to a high converting low payout offer. Conversion rates can be below 1% as well. Neither is better, its really about margin and return, not conversion rates.
Thank you Kenster .

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Old 01-10-2011, 12:46 PM   #10
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Default Re: What are the risks involved with CPA?

As far as risk is concerned, you shouldn't pay for adwords, or traffic, that will stop when you run out of money. You should pay for SEO if anything. Something that will generate traffic as well as good standing and pr, and results in serps. I think the goal would be to have traffic built to the point where if you didn't want to do CPA you would essentially be able to do anything else you wanted!

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Old 01-11-2011, 02:20 PM   #11
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Default Re: What are the risks involved with CPA?

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The risks...

... In truth, you can do everything without ever riskign a penny though, that's what I find fascinating.
Everything?


Can you explain, please?

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Old 01-11-2011, 06:25 PM   #12
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Default Re: What are the risks involved with CPA?

Paid methods = Risking Losing $$

SEO = Risking Time waiting for possible MONTHS to rank

Article Marketing = Also risking time and banging your head to figure out what works

YouTube = Risking time for very bad converting traffic and low volume

Craigslist = Risking getting ads ghosted

Social Media = Risking getting your accounts banned for spamming

Each different method has it's downfalls and upsides. What's your choice?

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Old 01-11-2011, 06:47 PM   #13
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Default Re: What are the risks involved with CPA?

hey all, i'm new here so please excuse me if i ask something too obvious

when using PPC advertising, is my $100 offer enough to get started. what do you guys (who have had success) think is the minimum you can spend using PPC to see if an offer is converting? $100? $500? $1000? how big is the risk?
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Old 01-12-2011, 07:02 AM   #14
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Default Re: What are the risks involved with CPA?

there is a risk with untrusted networks. so the best thing to do is, join only with trusted networks. then there would not be any issue at all.

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Old 01-12-2011, 02:17 PM   #15
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Default Re: What are the risks involved with CPA?

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Originally Posted by jeffrey73 View Post
Paid methods = Risking Losing $$

SEO = Risking Time waiting for possible MONTHS to rank

Article Marketing = Also risking time and banging your head to figure out what works

YouTube = Risking time for very bad converting traffic and low volume

Craigslist = Risking getting ads ghosted

Social Media = Risking getting your accounts banned for spamming
Jeffrey what do you suggest as an alternative? Do you think CPA marketing is not good start?

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Old 01-12-2011, 05:59 PM   #16
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Default Re: What are the risks involved with CPA?

I think every business has its own risks to consider, you can play as safe as you can be and suddenly out of no where, someone drop a bomb at you for no reason what so ever.
So Just enjoy the ride while it last!


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