CPA marketing, or cost-per-action marketing, is a partnership strategy that involves a collaboration between an affiliate company and an advertiser. An affiliate is responsible for providing marketing services for the advertiser. The affiliate earns a commission when a user or customer takes a specific action as a result of their marketing efforts. Actions include: signing up for a newsletter, filling out a form, installing an app, watching a video, signing up for a trial, requesting an offer, making a purchase.

Advantages:

Low Risk: Advertisers only pay when the desired action is completed.

Greater Focus: Targeting specific actions that are important for the business.

Easier Conversion: Actions are usually simple, e.g., registration, resulting in higher conversion rates.

Disadvantages:

Lower Fees: Commissions are usually lower compared to sales-based affiliate marketing.

Traffic Quality: The quality of traffic may be low, as users are not necessarily committed to the company.

Compliance Requirements: Stricter approval processes are often required.

In affiliate marketing, the affiliate earns a commission when a sale is made through their link.

Advantages of Affiliate:

Higher Commissions: Commissions are usually larger, especially for high-value products.

Long-term Earnings: It can generate passive income with the right strategy and content.

Flexibility: Affiliates can choose the products or services they promote.

Disadvantages of Affiliate:

Greater Risk: Payments are made only when a sale is completed, which can be more challenging.

Slow Return: It takes more time to see results and profits.

Competition: The field is quite competitive, requiring continuous improvement of marketing strategies.

Comparing the two:

Risk Management: CPA offers greater security for advertisers, while affiliate marketing can offer higher profits but with greater risk.

Ease of Conversion: CPA typically has easier and quicker conversions.

Profit: Affiliate marketing can yield higher profits per conversion.