Is CPA a sustainable business model?

27 replies
Morning all,

So I've spent the weekend contemplating my next business move and whilst the CPA model seems appealing I do have my reservations about it's sustainability.

I'm worried that it does not create a business as such but rather a well paying job. If you stop running ads does your income stop? For example if you went on holiday does your business go on holiday also?

Also, are you worried that a lack of diversification and reliance on successful ads could have a severe negative impact on revenues if you have just a few poor performing ad campaigns?

Like to hear your thoughts.

Thanks

Gavin
#business #cpa #model #sustainable
  • Profile picture of the author iPeter
    You can always turn CPA marketing into a business - whether creating an affiliate network, or buying an office and training your employees to create ads instead of you. If you are worried that once they understand the CPA marketing, they will quit their job, there are ways to greatly reduce their temptation to do so.

    For me personally, CPA marketing is a tool to gain capital which can be used for the aforementioned stuff, or for other opportunities - whether online or offline.
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  • Profile picture of the author newmarketwave
    CPA is like any other AD company. It functions with your money. As long as you have money with them you will surely sail through whether you are on holidays or not. Staff forming their own parallel business is not a fear at any time because they have to go some fundamental stages of developments before they stabilize.
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  • Profile picture of the author alchebank
    I think it depends on how you manage your campaigns. If you need to adjust your bid to compete with others everyday, it's not a passive way.

    But if you don't have to do that just let your campaigns run without adjust anything, yes, it can make money for you when you're on holiday. What you need to do might be just changing your bidding position twice a month and that's all.
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  • Profile picture of the author drewfioravanti
    Once I get my campaign dailed in, I simply spend 20 minutes a week managing it. If I find that I need to create new ads, ad groups or landing pages, I'll do that. But, it is pretty hands-off at this point.
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  • Profile picture of the author CashAdsMike
    Yes, it can become a very sustainable business.
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  • Profile picture of the author RemyMartin
    If you need to be persuaded or convinced on this model and its opportunity-- then this isn't for you.

    You should do something else, because I don't think you realize how much money people are making with it. I'm not about to sit here and sell it to you like a used car.
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    The money is the motive.

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    • Profile picture of the author GSMarketing
      Originally Posted by RemyMartin View Post

      If you need to be persuaded or convinced on this model and its opportunity-- then this isn't for you.

      You should do something else, because I don't think you realize how much money people are making with it. I'm not about to sit here and sell it to you like a used car.
      This was really helpful, thanks
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  • Profile picture of the author PPC-Coach
    No it's not sustainable.

    Don't do it.

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  • Profile picture of the author Greedy
    I'm worried that it does not create a business as such but rather a well paying job.
    Isn't all business just a really well paying job, where you work a lot more.

    It is very sustainable.
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  • Profile picture of the author Al amin
    CPA is very sustainable Business Model. If you work tirelessly. And Nobody tires of making money
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  • Profile picture of the author GSMarketing
    Thanks for your replies gents and ladies.

    I wasn't questioning that CPA is a sustainable model btw, I was simply asking the question as to whether it was. There is a HUGE difference between these 2!

    As a newbie to this area, who is primarily focussed on email lists (which can become massively hands-off), I was just curious as to how those of you who are clearly successful view the potential passiveness of CPA.

    Greedy - I don't see running a business as a well paying job - although it clearly is at the start - it's about creating a position where the money and time you've invested continue to work for you when your attention is diverted elsewhere. You're clearly VERY successful at what you do though, and obviously have created this position for yourself!
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  • Profile picture of the author javiervorcu
    Hi guys,
    I need affiliates for a CPA Campaign in Mexico (hosting/technology).
    Does anybody know?


    Regards.
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  • Profile picture of the author drewfioravanti
    When you focus solely on popular, high paying offers, all you need to do is create a website and dial in a campaign. All of the work is done up front...building the website and dialing in the campaign. Once the campaign is dialed in, you simply review the week's stats and make some adjustments...if even needed.

    Here is what I know is going to happen every day my ads run: I am going to get clicks. I am going to get conversions. And the ROI is always 100+%.

    That's whether I am sitting here, sitting there, sitting on the toilet or sitting on the beach with my wife.

    That's about as passive as I am ever going to get, most likely.
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    • Profile picture of the author Glynn Kosky
      Originally Posted by drewfioravanti View Post

      When you focus solely on popular, high paying offers, all you need to do is create a website and dial in a campaign. All of the work is done up front...building the website and dialing in the campaign. Once the campaign is dialed in, you simply review the week's stats and make some adjustments...if even needed.

      Here is what I know is going to happen every day my ads run: I am going to get clicks. I am going to get conversions. And the ROI is always 100+%.

      That's whether I am sitting here, sitting there, sitting on the toilet or sitting on the beach with my wife.

      That's about as passive as I am ever going to get, most likely.

      Very inspiring but are you successful?
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      • Profile picture of the author drewfioravanti
        Originally Posted by londonwar View Post

        Very inspiring but are you successful?
        Depends on what you consider successful.
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        • Profile picture of the author RedShifted
          Originally Posted by drewfioravanti View Post

          Depends on what you consider successful.
          $10,000+ a month would be a conservative estimate.

          $30,000 a month would be very successful.
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          • Profile picture of the author biggenius
            Originally Posted by RedShifted View Post

            $10,000+ a month would be a conservative estimate.

            $30,000 a month would be very successful.
            30K a day would be more realistic
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  • Profile picture of the author ChrisBa
    Originally Posted by GSMarketing View Post

    Morning all,

    So I've spent the weekend contemplating my next business move and whilst the CPA model seems appealing I do have my reservations about it's sustainability.

    I'm worried that it does not create a business as such but rather a well paying job. If you stop running ads does your income stop? For example if you went on holiday does your business go on holiday also?

    Also, are you worried that a lack of diversification and reliance on successful ads could have a severe negative impact on revenues if you have just a few poor performing ad campaigns?

    Like to hear your thoughts.

    Thanks

    Gavin
    The CPA industry is an ever evolving industry. The sustainability isn't really a question to me, more the sustainability of the people running the offers.

    Chances are if you are just running ads and direct linking to CPA offers, this is not the best model IMO.

    This is one of the reasons why many people are preaching about building lists, it gives the potential for YOU to keep these people as customers, as long as the person is still a member of your list, they are still a potential customer which could yield an infinite amount of conversions.

    This is also the importance of diversification, if someone is only involved with 1 niche, and that niche crashes, it could cause issues while that person tries to get back on their feet. However if they are involved with several, if 1 niche dies, then it might hurt to lose a chunk of their business, but it will be easier to keep going if they have other campaigns to rely on.
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  • Profile picture of the author fxmaui92
    Is it sustainable? It depends how you integrate it within your business. Is it a small of your business, or is it your entire business model? Some people integrate it into their FB campaigns. Others use it on their Thank you page in their funnel. Sure, it is sustainable but the longevity aspect depends on what you do with the people. Are you building a list with them? Driving them to a squeeze page before the CPA offer?
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  • Profile picture of the author montozza
    If you treat it like a business, then yes it is. If you are doing as a hobby, 1-2 hours per day after the lunch instead of taking a nap...then it is not a sustainable business and it will never be.
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    “You can automate everything except content and relationships.”

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  • Profile picture of the author watsonovedades
    You can make a lot of money and even create your own business i mean physical
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    • Profile picture of the author owen2012
      Not very sustainable if you do not own a list.

      Not building or owning a list is like building a house on sand.

      Build a sustainable business on a proven system which is build a list.



      peace
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      • Profile picture of the author drewfioravanti
        Originally Posted by owen2012 View Post

        Not very sustainable if you do not own a list.

        Not building or owning a list is like building a house on sand.

        Build a sustainable business on a proven system which is build a list.



        peace
        You don't need a list when you have thousands of eager prospects visiting your site every day.

        Stop believing the hype. Start marketing.
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  • Profile picture of the author biggenius
    I like working from home. Why you want to change it?
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  • Profile picture of the author cpa-money
    nothing is sustainable in this world, you need to change the offers, traffic source and your budget. it takes lots of time to make it sustainable
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  • Profile picture of the author megamind22
    CPA is a perfect model to build your business around. The good thing about is you will make money even if you don't sell anything to anyone. The only obstacle is getting in to good CPA networks which is the difficult part.
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  • Profile picture of the author MattC
    Originally Posted by GSMarketing View Post

    Morning all,

    So I've spent the weekend contemplating my next business move and whilst the CPA model seems appealing I do have my reservations about it's sustainability.

    I'm worried that it does not create a business as such but rather a well paying job. If you stop running ads does your income stop? For example if you went on holiday does your business go on holiday also?

    Also, are you worried that a lack of diversification and reliance on successful ads could have a severe negative impact on revenues if you have just a few poor performing ad campaigns?

    Like to hear your thoughts.

    Thanks

    Gavin
    Just to add my experience for you Gavin having done it, made cash from it and done other stuff too.

    Why is CPA good?

    1. Many people can and have made lots of money fast from it

    2. It's instant profits when it works and freakin great. No waiting for some SEO techniques BS to work.

    3. If you're very good and you work very hard, you can make $1k a day, then you can scale up to $2-3k per day, or $1 million a year when you master some techniques on much larger ad networks, or adult.

    Why wouldn't you do it?

    1. You can get banned from ad networks in a flash and see your revenues disappear right away. Not nice.

    2. Your affiliate managers can say the leads you're sending are bad quality and pull you from it right away.

    3. You depend heavily on the availability of offers that work (ie. other people)

    4. You need to keep working at it. If you go away for a weekend you should keep an eye on your ads as weekends are hot.

    5. Costs of ads can go up when loads of rats come along and try doing the same as you, pushing prices up

    6. Your ad campaigns can get ripped in minutes..you come on to the WF to complain about it and they all tell you to shut up, 'cos everyone rips campaigns with spy tools :rolleyes:

    And last but not least..

    7. Once you stop CPA, you have no value in your business. If you wanted to cash in and sell your company, what have you got? Not much but your own personal skills.

    There are ways to mitigate the above, so don't let that put you off, but you should consider every point before your decide on your preferred course.
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