Cost Per Action (CPA) compensates affiliates when the user they refer completes a predefined action, such as making a purchase, signing up for a newsletter, requesting a demo, starting a free trial, or completing an onboarding process. This model ensures that merchants pay only for measurable results that align with their business objectives.
CPA is popular because it aligns the interests of both affiliates and merchants towards achieving specific objectives. Affiliates focus on driving quality traffic that is more likely to convert, while merchants can predict their customer acquisition costs more accurately. CPA rates vary significantly based on the action's value and difficulty.
In SaaS affiliate marketing, CPA often encompasses multiple actions throughout the customer journey, from initial sign-up through product activation and subscription conversion. Advanced CPA models may include quality scores based on customer engagement and retention metrics to ensure long-term value.