One question that troubles the affiliate marketers is that whether they should go for a recurring billing affiliate program or a CPA. The Recurring billing affiliate program VS CPA argument can be resolved with a proper knowledge about the two affiliate programs. Here is a look at both of them.
Recurring billing affiliate program :
Recurring billing is a type of fully-automated affiliate program. It is designed to make the sale, promotion and management of recurring transactions an easy task. It also offers a chance to make some good profits.
This type of an affiliate program offers a continuous value over a period of time. It can help the affiliates to earn predictable revenue, repeatedly. Affiliates who enter a recurring billing affiliate program stand to receive some recurring commission. This recurring commission usually ranges from 1% to 75%, which in turn converts into a big amount of money.
The recurring billing affiliate program easily gels with the popular affiliate marketing systems and is really easy to implement.
The recurring billing affiliate program is usually optimized to make sure that there are less authorization declines and a continuous hike in revenue. Also such an affiliate program tends to offer a guaranteed payment. The payment process makes sure that the affiliates get paid for every sale made by them. This is a big advantage, as most affiliates usually complain that they do not get their payments regularly with other programs
Usually a recurring billing program also offers a subscriptions reporting feature that allows the affiliates to manage their recurring customers in an easy way.
CPA is an acronym for Cost per action affiliate programs. These affiliate programs are based on an online advertising payment model. In these programs the payments are made on the basis of the various actions taken by the visitors. The actions here refer to a conversion in the transaction. The most common types of conversion are sales and registrations.
The actions taken by the visitors are prompted by using banners, text descriptions and buttons on the website. Whenever a visitor clicks on any of these it leads to a sale or a registration, which in turn helps the affiliates to make money.
People usually think that the various deals based only on clicks are a part of a CPA affiliate program. Well this is not right as such deals are usually a part of the cost per click affiliate programs.
Cost per action (CPA) affiliate programs includes both pay per lead and pay per sales affiliate programs. Pay per lead affiliate programs are designed to pay the affiliates for lead information like name and contact details. The pay per sales affiliate programs on the other hand pay the affiliates with a fixed amount for every sale or a percentage of every sale.
Finally, some people prefer Recurring billing affiliate programs because they offer repeated payments, on the other hand some go for CPA because of the great offers involved. So the choice between the two depends on the requirements of the affiliate.