CPA (Cost Per Action)
CPA, or cost per action, is a payout model that pays the affiliate a fixed amount each time a defined action converts, such as a sale, a lead, or an install. The advertiser only pays when the action happens, which is why CPA is the dominant affiliate pricing model.
CPA (cost per action) — sometimes read as cost per acquisition — is the affiliate industry's default pricing model. The advertiser pays a flat amount per conversion, and only when that conversion actually happens. No sale, no cost. That risk profile is why CPA dominates affiliate marketing: the advertiser's spend is tied directly to results, and the affiliate is rewarded for outcomes rather than clicks or impressions.
CPA vs the alternatives
- CPA pays a fixed amount per action (a $40 sale, a $12 lead). Predictable for both sides.
- CPL is CPA where the action is specifically a lead.
- RevShare pays a percentage of revenue instead of a flat fee.
- CPC pays per click and CPM per thousand impressions — used less in affiliate deals because they pay for traffic, not results.
The "action" in CPA is whatever the offer defines: a purchase, a funded account, a completed application. It is the same event that drives your conversion rate.
A worked example
You run a CPA offer paying $40 per sale. An affiliate sends 2,000 clicks and drives 50 sales. The math is simple:
- Payout owed = 50 × $40 = $2,000
- If each sale is worth $130 in revenue to you, revenue = 50 × $130 = $6,500
- Profit = $6,500 − $2,000 = $4,500, a 69% margin
Because the payout is a flat $40, it is easy to forecast and easy for the affiliate to compare against other offers using EPC. Contrast that with RevShare, where the payout floats with each order's size.
When CPA is the right model
CPA suits offers with a consistent conversion value — a subscription at a fixed price, a lead worth a known amount. When order sizes vary widely, or when you want affiliates to share the upside of big customers, RevShare can align incentives better. Many programs run both, on different offers or different tiers.
How this works in LimeliJourney
In LimeliJourney the payout model is a property of the contract attached to an offer, set on the offer card's Contracts tab. Choose CPA and enter a flat payout and received amount; the platform stamps those terms onto every click at click time, so managing them is part of running your partners and offers. Because economics are frozen at click time, changing a CPA rate only affects future clicks — conversions from earlier clicks keep the rate the affiliate was promised. You can pay a single traffic source differently with a per-sub-ID override, all without renegotiating the contract.