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how CPA companies make their money...

Discussion in 'CPA' started by radi2k, Jan 24, 2011.

  1. radi2k

    radi2k Junior Member

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    it may sound like a stupid question but as i'm not into CPA at all yet, i was just wondering how CPA companies make their money.

    just figure out they just offer E-mail/zip submits - where does the money come from? $1.75 per submit is a lot but who pays for that? do they have other partners buying this data or do they mail them on their own?

    thanks,
    radi
     
  2. Wings[SENSE]

    Wings[SENSE] Regular Member

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    They simply act as a broker between publishers and advertisers.
     
  3. sentry

    sentry Newbie

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    CPA companies make their money by giving you $1.75 for your lead when the advertiser gives them $2.00

    All offers are different in payouts
     
  4. RedKiller

    RedKiller Junior Member

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    Advertisers pay.I also wonder what can they do with an email costing over $1.But they must be making profit since they are still investing.
     
  5. dennisyu

    dennisyu Power Member

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    Yeah they get paid by the advertisers. What i don't understand is how advertisers make money off zip/email submits.

    I don't know how they can expect someone who thinks they are winning a free xbox 360 to sign up for two rebill offers. And then they complain about junk traffic.
     
  6. radi2k

    radi2k Junior Member

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    @dennisyu:
    that's exactly my question - why do advertisers pay so much just for a simple email/zip submit. that's freakin much money! they can't do anything else than email them, right!? ...
     
  7. MikeHustle

    MikeHustle Power Member

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    I read that a lot of advertisers sell/rent the list that they create. I suppose that is how they sort of cushion themselves from unproductive leads. They also shave leads:)
     
  8. aReJay

    aReJay Power Member

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    The majority of them are building lists that they sell or rent out to 3rd parties.

    Think, they pay $1.5 for each email.... They then rent the email out 3 times for $0.3 and clear $1.5/email, this strategy works, however requires some capital.

    Cheers
    aReJay
     
    • Thanks Thanks x 1
  9. secretsteve

    secretsteve BANNED BANNED

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    good stuff
     
  10. bayshorekid

    bayshorekid Regular Member

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    Very interesting thread/topic that I have thought about as well. If they are paying $1.75
    then they are making...
     
  11. rpkrocks

    rpkrocks Jr. VIP Jr. VIP

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    some advertisers put pinball ppi which gets them 1.00 and they pay some 70cent .some use adult and webcam affiliates which pay them 5.00 and they pay us 3.75 .

    Its pure profit.

    The thing we dont have to care about payout and shitty aff.

    We need them and they need us and its a universal law
     
  12. spuffy

    spuffy Newbie

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    Honestly with the submits there appear to be quite a few people that complete the offers. By offers for example the ones that say free Xbox. The user basically completes let's say 8 trials. Then 1-3 months later they will usually get that prize. They pay the user a fraction of what they make. They have pretty strict rules and count on the user not finishing requirements to get the xbox. Not sure if that makes sense, but yes some of those do actually pay the users.
     
  13. redstone.1337

    redstone.1337 BANNED BANNED Jr. VIP Premium Member

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    They act as a middle men between us the affiliates and the advertisers. Advertisers don't have the time to work directly with affiliates and also it would be a hassle for affiliates to work with dozens of advertisers. So, CPA Companies act as a broker, has contact with many advertisers and forward the offers to the affiliates for promotion and keeps a sweet part of the payout for themselves.
     
  14. nice1

    nice1 Regular Member

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    so eventually companies will start doing this themselves - perhaps if they are online - to save themselves cash
     
  15. ThePayRoll

    ThePayRoll BANNED BANNED

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    Simple.
    They get the email submit with the full data.
    They send out offers from other advertisers / CPA networks and make their money back that way OR they sell the list multiple times.

    Their paying $1+ for the 2nd page submit because its more information that they can use to make the email(s) look per more personalized to the user(s) and therefore have a better chance of conversion.