What are the risks involved with CPA?

15 replies
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.
#cpa #involved #risks
  • Profile picture of the author mtmjohn
    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.
    {{ DiscussionBoard.errors[3150428].message }}
  • Profile picture of the author lifeofadev
    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?
    {{ DiscussionBoard.errors[3150599].message }}
  • Profile picture of the author jeffrey73
    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.
    {{ DiscussionBoard.errors[3151084].message }}
  • Profile picture of the author Fullrevenue
    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 !
    {{ DiscussionBoard.errors[3154489].message }}
  • Profile picture of the author badboy_Nick
    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
    Signature
    Read my incredible story: www.affiliatechamp.co.uk
    {{ DiscussionBoard.errors[3154895].message }}
  • Profile picture of the author Kenster
    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.
    {{ DiscussionBoard.errors[3155814].message }}
    • Profile picture of the author lifeofadev
      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 .
      {{ DiscussionBoard.errors[3157036].message }}
    • Profile picture of the author tmccar
      Originally Posted by Kenster View Post

      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?
      Signature

      The Lord is my shepherd, I shall not want (Psalm 23)

      {{ DiscussionBoard.errors[3163928].message }}
      • Profile picture of the author jeffrey73
        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?
        {{ DiscussionBoard.errors[3165196].message }}
        • Profile picture of the author lifeofadev
          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?
          {{ DiscussionBoard.errors[3170252].message }}
  • Profile picture of the author Gunedat
    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.
    Signature
    I Should Put A Sig Here
    {{ DiscussionBoard.errors[3155915].message }}
  • Profile picture of the author u4icjaj
    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?
    {{ DiscussionBoard.errors[3165312].message }}
  • Profile picture of the author Thunder059
    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.
    {{ DiscussionBoard.errors[3167824].message }}
  • Profile picture of the author swayman
    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!
    {{ DiscussionBoard.errors[3171333].message }}

Trending Topics