Definition of CPA/CPC/CPM

CPA, CPC, and CPM are all methods that are used to pay for sales commission and advertising. They are ways that webmasters can earn money through their websites.

CPA refers to cost per action. With the CPA model, the publisher takes a greater portion of the risk since their revenue is dependent on successful conversion rates, which are in turn influenced by the advertising, marketing, and content of the website.

CPC refers to the cost per click or the cost-equivalent for each clickthrough. A commission is paid for each click on a link that is located on a website. No successful conversion needs to take place once and the visitor has reached the affiliate’s site.

CPM is the cost per thousand impressions. This standard media term refers to the potential number of people who might see a specific ad. It is sometimes referred to as the Cost/1000 unique visitors. The M in CPM comes from the Roman Numeral that is used for 1000.

External links:

• CPA, CPC, CPM, What Does it All Mean?
• Internet Monetization CPA CPC CPM Calculator
• Wikipedia explanation of CPA
• Wikipedia explanation about CPC
• Wikipedia explanation of CPM