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Cost Per Acquisition: What Is Cost Per Acquisition?

Cost per acquisition or CPA, similar to cost per action, is a measure of the costs associated with acquiring a new customer. A low cost per acquisition is an indication of cost-efficient Internet marketing practices.

Cost per acquisition is a popular pricing model in affiliate marketing. Merchants only pay affiliates for traffic that generated an action such as views, leads, or sales.

Companies which do not have reliable tracking systems to monitor actions have difficulties managing cost per acquisition advertising campaigns. Several affiliate networks specialized in cost per action advertising can help overcome these challenges.

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