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CPA Level Playing Field Questions

by Craig Fenton
5 replies
Hi Warriors:

Welcome to the weekend. Hope all is great.

Could you be kind enough to answer please a couple of questions about CPA Networks and the ground rules for those that promote any products.

Are the networks set up so those that are allowed to promote have to follow rules designed to make the playing field as even as possible or as long as a marketing tool isn't illegal can it be implemented?

For example if a musician (we can call him John Doe) was pretty known throughout the USA/U.K. wanted to promote a CPA product could he let it be known on his websites/blogs/articles/postcards/etc if you sign up for information on ABC Soda I'll send you a free CD of my latest album.

As long as the CD costs him less than the profit for the CPA, he would then make out well twice. A CPA sale and getting his music exposed. Is this allowed along with an athlete giving tickets to a game for a CPA sign-up, an author a book, an accountant a free consultation, and so on?

Thank you for your time as always and the superlative information the forum affords us all!
#cpa #field #level #playing #questions
  • Profile picture of the author Robyn8243
    There is no set of rules designed to "level the playing field."

    So what you are suggesting would be fine for offers that allow incentives.

    The whole point of CPA marketing is generating revenues for the advertisers. Advertisers are paying for lead generation.

    If those types of promotions resulted in below average conversions for the advertisers, then they would no longer allow those promotions. But as long as they were providing results, it would be fine.

    CPA is all about the advertisers, not what is 'fair' for affiliates.

    Robyn
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    • Profile picture of the author Craig Fenton
      Hi Robyn:

      Thank you for the reply.

      Couldn't the CPA Network and the imaginary product ABC Soda say "While there is nothing illegal about giving away a CD/Book/Consultation, we are paying somebody that is generating sign-ups that are not as targeted as we would like.

      By giving away a good product music/book/etc wouldn't the percentage of people signing-up to get info about ABC Soda be less interested in the soft-drink compared to somebody that sign-up through information on the company without any gift in front of their eyes?

      Thanks so much for the help!!
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  • Profile picture of the author Internet Undertaking
    Hello Craig,

    When dealing with CPA networks the hole incentive business is a bit on the edge. There is a lot of potential for money as long as you follow the rules.

    One thing you might consider: When you find an offer in a CPA network that allows incentive based campaigns to be run for their product, it would be because these companies, whoever they may be always have a way of making their money back.

    For example: Advertiser 1 will offer you $25 for each signup you get them.
    Next, you go and advertise this offer. You go to tell your viewers, get this free cd when you signup to this offer. Although your viewers are looking at the free cd instead of the product/offer, that is to the Advertisers advantage.

    Why? because, when the clients sign up for the offer that pays you $25, which is most likely a free trial offer, this advertiser will get its money back from your viewer. They will tell the viewer: Yes you only pay for shipping for the 7 day trial, and then when 7 days end, they will charge the viewer $50/month for their service. This is of course in fine print where no customer checks

    So your viewer gets the free CD, and a free trial, and 7 days later, gets billed for $50. If they are smart, they would understand that they are going to be charged and cancel the trial. But you would be surprised how many people don't.
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    • Profile picture of the author Robyn8243
      Craig:

      Obviously leads will be more targeted when consumers are requesting information or signing up for a free trial without any incentive...however, advertisers who allow incentives know this. Most will simply look at their numbers to see if it makes financial sense.

      Generally, incentive traffic pays out less on the same offer than non-incentive traffic.

      In your particular scenario if the leads from the particular CD incentive result in poor conversions for the advertiser, the advertiser will tell the network they will not accept any more leads from that particular affiliate OR with that particular incentive.

      There are many offers that allow incentives generally, but they disallow cash rebate incentives OR incentives from 'get paid to' offers.

      Everything is tracked in CPA by networks and advertisers. Even with non-incentive traffic, if a particular affiliate is sending traffic that converts lower than what advertiser finds acceptable, they simply will no longer accept it or pay for it. If they suspect that low conversions are the result of fraud, they will look into that as well, and won't pay for fraudulently produced leads.

      Your fictitious Musician would be wise to look carefully at the practices of any advertiser s/he promotes for their giveaway as well. Imagine what would happen if they told their fans to sign up for one of the free trials of the handful of companies who are accused of not sending merchandise, not allowing people to cancel, etc.

      If they felt they were being ripped off as the result of your Musician's offer, your Musician would no doubt bear some negative repercussions.

      Hope this helps.

      Robyn
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      • Profile picture of the author Craig Fenton
        Hi Robyn and Admiral:

        Your information is tremendously articulate and helpful.

        Enjoy Saturday!!
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