Stable lead generation is one of the component to success for every Forex broker. As soon as your potential clients turn into regular ones, this will reflect the company’s income accordingly. That is why brokers should always consider further steps to increase the number of potential leads.
Meanwhile, some lead generation methods fall under the definition of “shady scheme.” Today, we’ll consider one of such methods – for informational purposes only.
In this review, you will learn what CPA networks really are, whether it is worth using the method to increase leads, and what consequences it can have for the brokerage business.
H2 What are CPA networks?
The term involves some triggers that lead potential customers to the advertiser’s website and motivate them to take specific actions, including:
- Creating a new account
- Filling out the form
- Loading an app
- Buying a product or service, and so on
For its part, a broker pays a CPA network a commission for each of the generated leads. The flow of lead generation is formed through the traffic channels used within the CPA affiliate program.
Some marketers argue that this method of generating leads is excellent for a business-to-client (b–2–c) format and is unlikely to be useful for business-to-client (b-2-b) model.
Features of the CPA network
Let’s take a closer look at the features of the CPA network to understand what this method is about. Suppose a business owner enters into an agreement with a network of Internet resources (including blogs, information sites, or catalog sites) to place ad units.
Actually, the system is very similar to the Google Display Network, except for a few nuances. In this case, settlements between two partners are made solely for the action performed on the website of the brokerage company.
In any case, before starting cooperation, an owner of a brokerage site concludes an agreement with the advertiser and prescribes further terms of mutual settlements. Besides, the parties negotiate on a fixed rate for each attracted lead.
Initially, it may seem that CPA networks are not just a practical but also a very profitable way to attract leads. Compared to the price tag of conventional advertising sites, the total budget for CPA services will look several times less.
It is no secret that the desire to optimize advertising costs is often one of the primary reasons why a brokerage business uses CPA affiliates for active lead generation.
Features of Payment for Leads in The CPA Network
Currently, CPA affiliates offer the following 6 most popular payment methods:
- Cost Per Sales (CPS). A broker pays only if a client has made a deposit or subscribed to additional services.
- Cost Per Order (CPO). A company pays for a placed order for a product or service.
- Pay Per Install (PPI). A broker pays for the successful installation of a trading platform application.
- Pay Per View (PPV). An advertiser pays for every single view of the advertising video.
- Pay Per Lead (PPL). A broker pays only when a user leaves a request on the site or fills out a form with a request to call back at the appointed time.
- Pay Per Call (PPC). A company pays for incoming calls from potential customers.
It would seem that the system of working with CPA affiliates looks very profitable and effective. Still, a brokerage company that decides to use this lead generation method can easily be deceived and waste advertising money.
How Are Brokers Cheated On The CPA System?
If you’ll take an unbiased look at the process of attracting leads, it becomes evident that CPA networks can use some tools to drive useless traffic to your site.
You may pay for leads that have no impact on your business. For example, some CPA agencies do not always use a transparent lead counting system, using tools such as:
- Filling out the form on the website
- Masking “black” traffic as a “white” one
- Generating automatic calls
- Opening sites in a frame and more
As a rule, CPA networks quickly wind up traffic data to make as much money as possible. It’s not that easy to find out or prove any “cheating” here. As a result, an advertiser can waste a large advertising budget for nothing.
H2 Should I Use CPA Networks for Brokerage Business?
Today, you can find hundreds of CPA networks for every taste and wallet. However, given the above arguments, it can be assumed that most CPA affiliates are a waste of money.
If you compare this same tool with organic lead generation using SEO tools, the conclusion becomes even more apparent. No doubt, using SEO tools is the so-called long game. If you plan to build a reliable business, you should focus on the lead generation of a target audience that will convert and generate profits.
In the meantime, lead exchanges simply catch up with a considerable number of non-target audiences to your resource. As a result, a broker not only does not receive the expected effect from lead generation but may also suffer from “artificial traffic” of online users.
Search engines like Bing, Yandex, and Google have long learned to track “non-typical behavior” of users on websites. Therefore, do not be surprised if your site turns out to be far beyond the top of the search results.
Now the ball is in your court!