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Tuesday, December 12, 2006

PPC, CPM or CPA?

Before going further on online business or to join any advertising or affiliate program, you might want to know some terms of payment schemes like;

1. PPC – or pay per click. Pay per click or cost per click means, you are only paid when visitors click the advertiser's ads on your site.
2. CPM – or pay per impression. Here, you’re paid according to the number of times the advertiser's ad is displayed on your site.
3. CPA – or cost per action. You’re paid when the audience click on ads or link on your site and make an action (e.g. buy, subscribe, sign up or others prescribed action).

While you will probably get the highest payment rates with CPA method, it has the lowest conversion rate of the three schemes.

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