A new affiliate program seeks to define and enlighten on the principles of CPA (Cost Per Action or Cost Per Acquisition) as a business advertising model. The new program is called Affiliate Jump. It is revealing as far as a measure to grasp the concept of CPA and how to become successful in business with it. The ebook explains some of the principles of cost per action.

This is an equation that sums up the 'profit equation'.

Lead Generation + Relationship Building = Maximum Profits

This equation is actually very profound because it seems on the surface that it would be relative to many different variables; the constantly changing factors of online business.

Simply put, to grasp the meanings of Lead Generation and Relationship Building and how they relate to each other, will be to explain the fundamental principles of earning profits from your business.

Each business is looking for more leads, or customers, and is dependant on a continual supply of new sales, acquisitions, registrations, or subscriptions so to speak.

When looking at the value system of cost related terms, the cost per impression is at the lowest end, then followed by cost per click, and finally the higher value remains at the cost per action, as defined by the advertiser. This is mainly because the generation of a lead is more often the repeat customer and therefore the higher dollar amount.

So, the generation of a lead is the most important and first job of the affiliate in the CPA model. Which also means, that the affiliate needs to have a constant supply of eyeballs or means of traffic generation to be effective at cost per action advertisement. This being a prerequisite to becoming successful at this type of business model, that the constant supply of traffic and visitors is satisfied for the regular generation of leads.

Secondly, and equally as important is the Relationship Building aspect of the profit equation. This is something that happens over time that you establish a trust relationship with your prospects and introduce them to what your business offers. This is also a process and can take up to days, weeks, even months. It normally takes up to 7 times for a prospect to view an offer to make a decision on it.

So, while you're building this person's trust to a degree where they will be ready to purchase from you, you are in the phase of relationship building. Once the decision is reached, the person merely needs to follow through on their commitment to buy. That's how the CPA model works from a psychological level.

From a financial aspect, the model works like a person registers for a quote on insurance, a trial for a diet, or college information, and the affilate gets paid for the one time registration. There are on this level multi-billion dollar companies ready to supply the demands of the applicants for the acquisition of new customers. But realistically, affiliates can earn not only commissions on one time sales, but passive income from repeat customers and residual income as well.

Lead generation offline works slightly differently from online acquisitions so the evaluation of the discussion of supply vs. demand here would be a little different as well. We know online there are opportunities to have low and no overhead on supplies, the costs run much better as far as VoIP phones, online faxes and so forth. Digital products makes it very inexpensive to deliver products electronically also. So for this reason, the evaluation of supply and demand can make it much more worth your while to get started in a venture such as this.

It isn't nearly as expensive nowadays as it used to be to work online. In some circles you can still pay upwards of a few thousand a month to make a living as efficiently as this. But with the emergence of affiliate networks and membership programs having very much the same principles as the CPA model, we know you can now spend close to a thousand a year on the tools you'll need to stay in business. A website doesn't cost nearly as much to maintain if you have the resources and know how to manage it. Domains and hosting have come way way down in the recent years.

You can also outsource strategically and manage well with a reasonable budget. In the sense that low start up businesses are a viable means of secondary or part time income, affiliate networks have emerged as a major part of making money online, as well as membership sites. Membership sites make list building a much easier phenomenon than it seems.

Membership sites like Affiliate Jump offer a reasonable cost with the necessary tools included in the price of the membership, making the expense much more manageable than listing each cost individually.