Pay-per-lead is similar to an affiliate program, with one notable exception: Your affiliates do not have to sell anything to get paid. So how can this type of program benefit you? It can help you get qualified mailing list subscribers or other types of leads.
Pay-per-lead programs, also known as CPA (cost per action) programs, can pay out for any specified action. Businesses may offer commissions to affiliates who get people to request a free insurance quote, for example. In order to qualify the affiliate for a commission, the leads usually must supply a valid email address or other contact information.
This accomplishes two things: It gets traffic to your website, and it gives you contact information to use in follow-up.
In order for a CPA program to be profitable,we must figure out how many leads we need to make a sale.
Then we must set our price per lead at a level that will allow us to get that many leads and still come out ahead. For this reason, CPA programs are best suited to websites that are fairly well established and monetized.
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