Do you own a blog or website? Are you interested in making money out of them? If so, one of the easiest and most popular methods is advertising. However, did you know there are many different ways to get paid for that advertising? Let's consider three of those ways - CPC, CPA, and CPM.

Sounds confusing, but it's simple to learn about and understand. Let's examine each of them!

What is CPM? - Getting Paid for Views

CPM is known as Cost per Mille. Mille means a thousand. So, with CPM, you get paid for every 1,000 times an ad is displayed on your website. Let's say you have a website for a small business, and an ad is displayed on that website. You get paid a small amount of money each time that ad is displayed to 1,000 people. They don't have to click on it or look at it; you get paid because they saw the ad. CPM advertising is ideal if you have a lot of people visiting your website.

What is CPC? - Getting Paid for Clicks

CPC stands for Cost per Click. This part is pretty easy to understand. You are being paid each time someone clicks on an ad on your site. Back to our business website! With CPC, you get paid when someone has enough interest to click on the ad to see what it's all about. They may not buy the product, but you will get paid for the click. This option works if you have ads that are very engaging and people are likely to click on.

What is CPA? - Getting Paid for Actions

CPA means Cost per Action. Now we've got into the interesting part. When you get a payment on CPA, it means that someone clicked on an ad and did a specific action. The action may be signing up for a free trial, downloading a guide, or buying a product. Under CPA, you would only get paid once someone clicked the ad and completed the goal, such as making a purchase. CPA is common in affiliate marketing, where you promote a product and earn a share of the sale.

Which Payout Model Should You Choose for Affiliate Marketing?

Now that you have an understanding of CPC, CPA, and CPM, let's help you decide which one is best for affiliate marketing.

Remember: There isn't one right answer. It depends on the type of website, blog, or social media you have and the actions of your visitors after they arrive. Let’s take a look at each one in detail.

CPC – A Good Start for Affiliate Marketing Beginners

This is a great option if you are good at getting people to click. You might post a fun blog or share cool things, such as new shoes, video games, or technology gadgets. If people see what you are posting about and are curious enough to click your link, that's your payday!

For example, you have a blog where you talk about toys. You might include a link to a toy store. If someone clicks that link, you get paid whether or not they purchase the toy. That is how CPC works.

CPC is good for people who are new to affiliate marketing because you don't have to sell anything. You just need people to visit and click. If your website or social media platform is getting a lot of views and people like what you share, you can earn through CPC.

CPA – Best for Earning more with Affiliate Marketing

Opt for CPA if you want to be paid only when consumers make a purchase or sign up after clicking your link. This is a good strategy if you are referring products and doing honest reviews. People must trust and appreciate you, or they won't follow what you say. It works well, too, if your readers take action by purchasing a product or signing up for a service. It is not enough that you get clicks as a CPA. You get paid only when they take action beyond the click. CPA can earn you more money, but it can be more difficult for you to generate an income because not everyone who clicks will take action.

CPM – Best for Sites with Lots of Views

Select CPM if you have many visitors to your website or viewers on your videos. With CPM, you are paid when 1,000 people view your ad, even if they do nothing. This works great for you if, each day, you are getting thousands of views on your content.

This method is great for people who are blogging, making videos, or have high-traffic websites. Even if the visitors did nothing, just because they looked at the ad, you can earn money.

CPM usually pays less than other methods of advertising, but if you have a lot of viewers, your money will grow quickly over time.

Can You Use CPC, CPA, and CPM Together in Affiliate Marketing?

Yes, it is perfectly fine to use multiple ways to make money simultaneously. Many affiliate marketers do this, and it helps them earn more with their website or blog.

For instance, you can use CPC on your blog when an individual clicks on an ad.

You can use CPA when you provide info regarding a product, and have that visitor buy the product or sign up for something.

Also, you can use CPM with your ads when you just want your ads to reach visitors.

It is a great idea to use all three together. It gives you more opportunities to earn money because you are using all the different ways for different types of visitors.

Conclusion

Now you're familiar with the differences between CPM, CPC, and CPA. To recap, CPM pays for views, CPC pays for clicks, and CPA pays for actions. There is not one option that is best for everyone. The choice is up to you and your website.

Do some researches, consider testing different models, and find out what works best for you. Choosing an affiliate marketing platform that is well-suited for you can make an enormous difference in your income, so use good judgment and take the next step in making money online!