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Google going into CPA. When I first read this, I wasn't suprised as I had heard rumors that Google was planning to move into the CPA market as well. There is a lot of buzz on the net about this move. However, I'm convinced that it's not the next big thing that will skyrocket Google's profits...

There are several reasons why I'm convinced that this is not as big as people are trying to make it:

Publishers

1.The Google Adsense success lies in its CPC model. Publishers know that they are going to get money when visitors click on a link. A lot of publishers, maybe even you, look for the 'safety ' of the remuneration of a click fee. In a CPA based model, this is no longer the case which makes Google ads much less attractive.

2. Lack of control seems to be a second reason why affiliates may not embrace the Google CPA: with affiliate links you are able to integrate them into your site the way you want them to. With Google adwords, this is not possible. This makes it harder to pre-sell things(especially if you don't even know which lead offer will be on your site!) and will result in worse results than with regular affiliate marketing.


Advertisers

1. Affiliate marketing to me is more than only CPA, it's not only merely the results that count (although number 1 reason of course). It's about building a profitable business relationship between a merchant and an affiliate. As an advertiser you should work together with affiliates who promotes your services and products, and not just 'dump' a  link on the site of the affiliate

Although the Google model may be initially attractive to some advertisers, I'm convinced that merchants who take their affiliates seriously, will perform better.

Google

1. Google will not completely move into CPA as they will cannibalize on their own profits and success: why go for unsure leads and only be paid once a lead is generated if they can get paid for the click?

2. Control over results shifts from Google to the advertiser: if Google only gets paid if a lead is there, you need to rely on the advertiser that he reports these leads consistently and truthfully. I think though several advertisers will 'forget' to report leads, both hurting the business of the affiliate and Google.

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