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I am confused abt CPA advertising - Please Help

Discussion in 'Blogging' started by Raza Rizvi, Mar 10, 2014.

  1. Raza Rizvi

    Raza Rizvi BANNED BANNED

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    Hey, This could be a very silly question but I am really curious.
    Just came to know abt FB ads -Cost per Conversion module, I haven't spent any money on ads ever so I don't know much abt it. To make my question real simple lets consider a situation.


    I start a FB ads campaign for conversions and lets say CPA price is $4. Suppose I am selling a product for $10 and the price I pay for that sale is $4 so do I make $6 that easy :? *The most confusing part* what if I adjust my price to $14 per sale :? you might say that adjusting the price would turn the buyer away but still if he is turned away I am not charged but if he still buys it I get $10.

    So basically there are 2 questions.
    1. Do I make $6 while spending $4? Is there any downside of this situation?
    2. What if I adjust my price ? :?

    Please Help
     
  2. wild1

    wild1 Jr. VIP Jr. VIP

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    There is never a sure way to know if the CPA will convert unless you do a test. When I do test on FB Ads I put $20 to see if it converts at least 1 sale. If it doesn't I move on to the next offer. If it converts very well you might pay less. Don't go for more than what the offer is paying you because you might lose money.

    What I would do is if it is a $10 CPA offer set it up for $10 and if it converts fast change to $8 and keep going down until you are satisfied with the sales you are making.

    That is what I would do, so do it at you own risk.
     
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  3. Raza Rizvi

    Raza Rizvi BANNED BANNED

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    Thats what Im asking :? lets say 0.5% of the traffic is converting but still I dont see any risk for me. I mean I will only pay if there is a sale whether the conversion rate is 100% or 0.1% . :?
     
  4. Macthetrix

    Macthetrix Regular Member

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    There is no such thing as a conversion module. You either pay per click or pay for impressions. To make a positive ROI you need a higher EPC than CPC
     
  5. Raza Rizvi

    Raza Rizvi BANNED BANNED

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    14wpok6.jpg Please be sure before u answer
     
  6. wild1

    wild1 Jr. VIP Jr. VIP

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    There is... I guess you havent been to FB ads manager in a while...
    hG3XpGK.png
     
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  7. Raza Rizvi

    Raza Rizvi BANNED BANNED

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    anybody else???
     
  8. Macthetrix

    Macthetrix Regular Member

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    This is a just a tracking tool. It is naive to believe you could pay for conversions of your products. You should check out some threads about facebook ads before you ask questions like that.
     
  9. aliarshad205

    aliarshad205 Newbie

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    Try to use other PPC service providing sites like jemamedia,Adroll etc.
     
  10. Raza Rizvi

    Raza Rizvi BANNED BANNED

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    @Macthetrix - that isn't just a tracking tool, that is cpa advertising. Anyways, my question is simple; what is the risk of cpa advertising for an advertiser considering that he is just spending 33% of the cost of his product on advertising? I mean is it really risk free?

    @Aliarshad205 - dont talk nonsense, im not asking for ppc networks.
     
  11. jimmylegs

    jimmylegs Senior Member

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    You answered your own question. CPA has a risk even higher if you don't know how media buying works.

    Facebook can run a lot of money and may be a waste if you don't know how to get the CPC down.
     
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  12. CPAENGINE

    CPAENGINE BANNED BANNED

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    Pay per click or pay per impression.
     
  13. Spock187

    Spock187 Newbie

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    Raza, i can answer some of your questions. To begin, yes, there is a massive risk. Media buying is very dangerous. Each day that goes by, it becomes more dangerous. I'm not saying this to discourage you, only to ensure that you are aware of the risks. jimmylegs, above cautioned you for good reason.

    I believe Macthetix's response to you was 100% spot-on-accurate.

    I suspect there was a small flaw in your initial understanding of the payouts offered, and since some time has past since your original post, your experience and knowledge has grown in this field.
     
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  14. IMCapitalist

    IMCapitalist Senior Member

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    You can try to use other PPC service providing sites like jemamedia,Adroll etc.