Which Is Better - A CPA Business Or An Affiliate Marketing Enterprise?
In this article, we will be answering a vital question that often plagues novice online businessmen as well as veteran internet marketers who want to expand their online empires – which is a better business model: a CPA business or an affiliate marketing business? They are both highly profitable opportunities. They are both easy to set up. They both require the same techniques for their respective successes. They both have big markets waiting to be exploited.
Though it is ideal that an internet marketer venture into a CPA business and an affiliate marketing business, the fact remains that most of them don’t have the luxury of time and resources to accomplish such. Majority of internet marketers are in a quandary of sorts. Which is a better investment? A CPA business or an affiliate marketing business?
Why A CPA Business Is Better Than An Affiliate Marketing Business
Some quarters are of the strong belief that a CPA business is the way to go. Aside from the obvious benefits of a CPA business – that it is easy to build and operate, that it requires minimal financial capital to jump start its operations, and that its requirements can be carried out conveniently, among others – there are specific reasons why this business model is better than its affiliate marketing counterpart.
- A CPA business doesn’t require the prospect to buy anything. A CPA business only requires the prospect to perform a particular action – usually a subscription to an existing mailing list. The internet marketer will be paid every time a prospect performs such an action. An affiliate marketing business, on the other hand, requires the internet marketer to refer a prospect who should actually buy whatever it is the affiliate program is selling. Affiliate programs pay on a commission basis, that is, they pay the internet marketer a certain percentage of the sale. If the prospect doesn’t buy anything, the internet marketer doesn’t earn anything.
- A CPA business doesn’t have to contend with refunds. Since payment is instantly credited once a prospect is transformed into a lead, your earnings would be definite. An affiliate marketing business has to wait out a certain period (usually 30 days) from the date of sale before the commission can be credited. This is to ensure that the customer referred by the internet marketer won’t apply for a refund.
- Some CPA networks are well-structured. There are network managers on duty 24/7. This means that if you have concerns about your CPA business, you will always have access to the technical support the networks can provide. Affiliate networks are often on “set and forget” mode given the reliability of their automated systems which have withstood the test of time.
Why An Affiliate Marketing Business Is Better Than A CPA Business
There are, however, many internet marketers who prefer an affiliate marketing business than a CPA business. They have their own reasons, all of which are equally as compelling.
- It is harder to get accepted into CPA networks and CPA programs. Given the high level of fraud transpiring on the publishers’ side of the fence, CPA networks are more wary in accepting new applicants. Internet marketers who want to engage in CPA marketing are carefully scrutinized. They must be willing to provide their real personal details. They must also be able to prove that they can drive targeted traffic – not just normal traffic - to the CPA network. Rejection rate for new applications to CPA networks have drastically increased in the past 2 years. No such problem exists for affiliate networks.
- CPA networks can kick you out for poor performance. Affiliate networks are not guilty of this.
- Because of this pressure to perform well, many people think of a CPA business as a full time job. In fact, it is not uncommon for a CPA businessman to describe himself as some who “works for” a particular CPA network. Affiliate programs are less committal in nature.
Which To Choose?
A CPA business promised bigger profits in the long run. The ease by which you can earn from such a business model makes it the more lucrative option.
However, a CPA business will require more work. If you cannot commit yourself fully to this kind of business model, you’re better off with the less demanding opportunity that is affiliate marketing.
