The growing acceptance of the power of blockchain technology and its application across a wide variety of industries has led to a sharp surge in blockchain projects. These projects are looking to raise funds and convince investors about their plans via a good marketing option that is not only cost effective but yields optimum leads too. And, this is where affiliate marketing or CPA (cost per action) marketing comes into play. However, many marketers are unsure about how CPA marketing works and its impact. Here, we look at some common questions people ask about CPA marketing for blockchain projects.
What is CPA Marketing?
As the name suggests, CPA Marketing is a compensation model where a commission is paid when a user or a visitor clicks on an affiliate link and takes a specific action, such as filling a form, seeking a quote or asking for a free trial. A major reason why more and more blockchain projects are opting for this form of marketing is that it calls for payment only when some action takes place and therefore reduces overall marketing expenses. Although this marketing strategy has a clear edge over other strategies purchasing expensive banner ads, people tend to have several queries about this form of marketing and its use for blockchain projects.
Here are some important FAQs about CPA marketing answered.
1. How does the project promoter know whether an affiliate’s link has translated into action?
Affiliate programs are generally created and run using sophisticated software. This software generates specific links for each affiliate and keeps track of how many times these links are clicked. In addition to link tracking, the affiliate platform will also have tracking options that can be installed at the point of goal completion. These tracking options will only fire when a user or visitor that has come from an affiliate link, performs the action that defines the business goal. As the tracking options automatically track only after the action has been completed, most affiliate pay-outs are approved automatically, however, in some cases, advertisers may wish to approve the pay-out for affiliates.
Because the blockchain project promotor sets the goals for affiliates from the beginning of their affiliate campaigns and is responsible for installing the tracking that will fire after the payable action is completed, every time, the goal tracking is fired, they can be sure that the affiliates traffic has translated into an action.
2. Who all are eligible to become affiliates to market a project or product?
Affiliates can be individuals or companies who can promote a project or product either online, or offline through their personal network. Most affiliates use online channels such as blogs, comparison sites, social media pages, email marketing, or even paid search marketing.
To become an affiliate, all a person needs is access to potential customers for a project or product, and the ability to promote these projects or products to the potential customers.
3. How and when do affiliates get paid?
Affiliates are generally paid in FIAT, or major crypto currencies, like Bitcoin or Etherium. Many new projects would prefer to pay affiliates in their own tokens, however, affiliates are reluctant in accepting full payment in new tokens, as they require FIAT or easily transferrable tokens to keep their operations running. Having said this, there are affiliates specifically within the blockchain sector that would be willing to accept split level payments, where part is paid in FIAT and part is paid in the new token.
Additionally, affiliates are not paid after every payable action, they generally run a balance, that increases every time an action is completed. This balance is generally paid NET30, which means that they are paid 30 days after the end of the month that the commission was generated in.
4. What motivation do affiliates have?
In the case of CPA marketing, affiliates get paid only when they are able to generate successful leads. This means that they are motivated to work harder to ensure that their actions have some impact on the target audience.
5. Is there a possibility of fraud?
As with any online system, there is always a possibility of fraud, however, when it comes to performance-based marketing, the fraud is much harder to commit, as actions need to be verified before they will generate income for the affiliate, and there are generally no automated ways to complete these actions.
In addition to paying for performance rather than traffic, with a NET30 payment model, any action-based fraud can be detected and reversed long before the payment to affiliates is made. This all makes affiliate marketing one of the safest forms of online marketing.
The answers to these FAQs should give you a better understanding on how performance based marketing works, as well as providing you with the reasons why, if you aren’t already engaged in it, you should start working with CPA marketing for your blockchain project.