Cost Per Acquisition

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  • Cost Per Acquisition

     Ryan  updated 2 weeks, 3 days ago 1 Member · 1 Post
  • Ryan 

    February 9, 2021 at 7:18 pm

    CPA, or Cost Per Acquisition is the cost of Acquiring a new lead or client from a Cost Per Click marketing effort. The CPA is calculated by adding the total amount per click to the total clicks needed to generate either a lead or a sale. Every business has different definitions for the acronym CPA, but the principle of it remains the same.

    CPA advertising is how Aggregators and Wholesalers operate within the industry whilst buying leads from third-party Publishers. CPA is the method used to calculate the total cost to acquire a lead/sale that meets the specific quality concerns of the Aggregator’s clientele. Aggregators will typically have countless Publisher sources to establish some form of quality control for their clients, but it is rare to find an Aggregator that has any quality leads to speak of.

    This is purely a result of the Aggregator maximizing the financial potential of every record aggregated, by reselling the records over and over again to countless sources. It’s simple! Say it costs the Aggregator $15 to deliver a high-quality, exclusive lead from direct advertising methods (CPC). That aggregator will maximize the financial potential of that lead by reselling it at the same price immediately (3-4 times) and subsequently at lower, discounted prices as the lead’s age gets older.

    CPA advertising is the best way for you to maintain 100% exclusivity over your own leads. The moment you add an Aggregator in the middle is the same moment you give up control over your own book of business.

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