How's your CPA?

As an Internet marketer, your objective is to achieve the lowest possible cost per action for your ad campaigns. The lower your CPA, the higher your return on investment.

The CPA equals the cost of an ad campaign, divided by the number of lead conversions. The primary components in the CPA equation include advertising expenses (pay per click, email lists, etc.), and the revenue generated through conversions. You need to know this formula in order to determine the success rate of your campaigns.

If your CPA is not adequate, you may want to consider the following suggestions:

* Expand or modify your keywords:

Fine-tune the keywords by eliminating those that are not performing well. Create more groups and track the results from each group. Tweak the text in your search ads. Search engine keyword management is an ongoing process that should be monitored on a daily basis.

* Revise your offers:

Do you offer a free report for every order? Is your copy enticing enough for consumers? You may want to shake things up -- test different types of offers ... test new copy. See if the changes will result in a higher quantity and quality leads.

* Weigh quantity versus quality:

One offer may generate a ton of leads, but only a small percentage of conversions. If you are getting paid by conversions, this means you are wasting too many leads. In this case, maybe you need to try a new email list or target market. It may be OK to generate fewer leads, if the conversion rate is strong.

* Learn from your successful ads:

Closely analyze the most successful CPA ads. What is it about those ads that helps to generate a low CPA/high ROI? Is it the text? Is the text brief? Is it very descriptive? What keywords are you using? What landing pages are used? What offers are on those landing pages? What products are being marketed? Use this information wisely when creating other campaigns.

* Dump the bad/keep the good:

Do not hang on to high CPA campaigns for too long. If it is not working, either make changes or dump the campaign. You can use the money to help fund new advertisements; or you can re-allocate the money toward more successful campaigns.