A commission model in affiliate marketing where the publisher earns a fixed dollar amount for each conversion (new customer, subscription signup, lead, or completed transaction) they refer, regardless of the order value. CPA is one of the two primary affiliate commission models alongside revenue share (percentage of sale). CPA characteristics: flat payout per conversion: publisher earns the same commission whether the referred customer buys $50 or $500 worth of product; predictable publisher earnings: publishers can calculate their earnings per conversion exactly, making CPA attractive for publishers who want predictable income; new customer gateable: CPA programs can more easily restrict commissions to new customer conversions only by including customer status in the conversion tracking; no order value required: CPA works for lead generation, service inquiries, and trial signups where there is no immediate purchase value to percentage-commission. When CPA is appropriate: subscription and SaaS programs where signup is the conversion event; service businesses where leads or consultations are the conversion; programs focused exclusively on new customer acquisition; products where AOV is fixed (subscription box, membership) and percentage commission equals a fixed dollar amount anyway. CPA rate setting: CPA rate should be calibrated against customer lifetime value (CLV); typical formula: max CPA = CLV × target new customer acquisition COGS %; must be high enough to motivate publisher effort for the conversion difficulty; comparison: a $25 CPA for a $50/month subscription with 80% annual retention (CLV = ~$400) represents 6.25% of LTV — potentially sustainable; the same $25 CPA for a product with a $30 CLV is unsustainable.
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