Err... I don't get it... why are CPA offers so profitable when my math says otherwise?

3 replies
Suppose a CPA offer converts at 2% and the payout is $1 per lead, that means your revenue is just $2???

Err... and that doesn't include your PPC expenses... assuming you use PPC...

Hmm... something is not right here...

I *KNOW* people who are KILLING it with CPA doing up to 7 figures...

But from my math, I can't seem to figure it out...

Can someone advise?
#cpa #err #math #offers #profitable
  • Profile picture of the author Chris_King
    Well, some people don't do PPC with CPA because of low profit margins. Or you can focus on localized offers, like dating offers. Use a program like SpeedPPC to generate huge keyword lists with phrases like "black dating pittsburgh" and do that for every city with over 100,000 people.

    You can then create dynamic landing pages that match your ad precisely, giving you clicks for 5-15 cents. On offers that pay $2.50, you can easily get a 100% return on investment, but that may only be $5-$20 per day. But repeat this process and CPA can be very profitable.

    Personally, I would rather be on the other side of this equation. You are doing a fair amount of work and making descent money and the companies you are sending leads to get to keep those leads forever. If you can create your own service and become a merchant any pay people to send you leads, you may be onto something.

    Just my 2 cents
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  • Profile picture of the author Monetize
    Hello Johnson,

    Have a look at some of the major networks and look for
    offers with high payouts. There are offers that pay $35,
    $75, $150 per sign-up. Some programs pay even more.

    Check it out.
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  • Profile picture of the author Nick Brighton
    Originally Posted by Johnson Tay View Post

    Suppose a CPA offer converts at 2% and the payout is $1 per lead, that means your revenue is just $2???

    Err... and that doesn't include your PPC expenses... assuming you use PPC...

    Hmm... something is not right here...

    I *KNOW* people who are KILLING it with CPA doing up to 7 figures...

    But from my math, I can't seem to figure it out...

    Can someone advise?
    Offers that pay $1 per lead should convert at more than 2%. Why? Because these offers pay low for low results, such as a simple email submit or something.

    I would seriously stay away from any CPA offers that convert lower than 10%...because what that is ultimately saying is that they can't even get someone to enter their details for a free trial or entering their email or zip code.

    If you're trying to promote offers that only pay out $1 per lead, and it's converting at 2%, then you've got a totally screwed campaign.

    You need to target more specific keywords that are closely related to your offer. Also, you need to reevaluate what you're promoting (the landing page and the offer etc).

    All in all, you should pause your project if you can't convert a $1 lead for less than 50% in my opinion.

    Ultimately, it's a numbers game. But you're clearly working with the wrong numbers and paying too much per click for the wrong offers on the wrong keywords.

    Of course, all of this is speculation until we know exact details, which I am sure you'll not want to provide publically
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