Cost Per Action (CPA) or Cost Per Lead (CPL) networks have been around for many years and are often confused with traditional affiliate marketing. However, CPA networks are a different animal and it seems as though the only internet marketers taking advantage of them are those who can deliver significant web traffic to advertising partners comprising the network. These networks have historically been exclusive and by application and invite only until now.

The concept is simple from a network advertising partner’s perspective. Since they are already spending millions of dollars on advertising, why not get more “eyeballs” looking at their services and products on the internet by incenting those who can deliver web traffic to these offers? These advertisers know how to play the numbers game. The more people exposed to their promotions and offers, the better chances the services and products will stick.

These campaigns generate income for the internet marketer (also known as the network affiliate) by getting the web traffic to “act” based on an offer that one of the network advertising partners is promoting. This traffic is converted into leads which network affiliates are compensated for by the advertising partners.

In most cases, a referral fee is paid to the network affiliate as soon as a percentage of the trial offer is complete, even if the lead does not buy the service after the trial period. That is worth repeating. You as the network affiliate get paid after your directed traffic or leads agree to complete a trial period even if the lead decides not to buy the product or service. This is AWESOME!

The process flow of a network would typically play out like this. The internet marketer creates various campaigns to drive web traffic using multiple online sources. Some sources include search engine marketing, email campaigns and newsletter publishing. This traffic would be directed to several advertising partner’s promotions. These promotions would include “trial periods” whereby this web traffic is offered a service or product for free or at a discounted rate for a short period of time. At the end of the period, if the leads decide to keep the product or service there would be a charge (i.e. monthly) for continued usage.

As an internet marketer, you would get paid for generating leads or just getting people to sign up for and completing a trial offer. The amount you get paid is all dependent upon the offer itself (it can be six-figure lucrative if you drive enough traffic to the right advertiser promotions during the course of a year and are consistent). Of course, the networks with the most popular advertiser partners and attractive referral payouts are coveted and revered.

So what’s the catch? Our view is there aren’t any if you are driving traffic. We like the offers using our favorite four letter word: FREE. It does not cost anything to signup and use the service or product for the trial period and it should most likely be a service the lead would use anyway (e.g. credit reporting/monitoring services).

Some caveats for leads include being very organized if there is no intention of keeping the service so that it can be cancelled after fulfilling trial period terms. For example, if a trial period is 30 days, cancelling between 25-30 days should fully satisfy conditions. Also, leads need to have a credit card so that the advertising partners know the lead is a real human being and legitimate and not a computer generated applicant.

In a nutshell, these networks can be used to generate extra income for internet marketers. To see a CPA network in action without needing an invite, click on this link, opt-into the site and listen to this alternate income strategy for your business.