In the world of online advertising, one of the forms that marketing can take on the internet is with CPA (cost per action). This type of advertising is commonly used with the business of affiliate marketing. With CPA advertising, payments are based on performance. A person with a website takes the risk of putting up an ad on their site as they only get paid when someone not only clicks on the ad, but they have to actually make a purchase before the site owner gets any money. This form of advertising is kind of like PPC (pay per click) only someone has to actually make a purchase, and not just click on something for you to get paid.

A similar method that is somewhat identical to the CPA model is CPL, which is cost per lead. This advertising model makes it much less risky for someone to put an ad on their website, as the user doesn’t necessarily have to make a purchase like they do with CPA. CPL only requires that someone make enough of an effort to show the person paying for the ad that they are interested enough that they might potentially buy something later. This can mean that the user does something like filling out a survey or signing up for a newsletter. This is known in the industry as lead generation, as someone signing up for a newsletter, for example, can potentially lead to a sale later on.

With SEM (search engine marketing) it can be hard sometimes to make money, depending on what the user has to actually do in order for the owner of a website to get paid. Probably the easiest form of advertisement to get paid from is PPC, where all a user has to do is click something. The next easiest is CPL, where the user needs to show interest by signing up for a newsletter or something similar. The hardest to make money from is CPA, as a user must actually click and make a purchase.

The best path to take would be to utilize CPL, as it makes use of PPC, SEM and SEO (search engine optimization) to make it work even better for them. This can be virtually risk free for the person putting the ad on their site. Using SEO, you can have specific keywords throughout your site so that search engines can find you. All of this is done to help increase the lead generation for the person paying for the ad.