Understand basic Online money terms CPA, CPC, CPM and CPL

We have been talking about making money online from long time. To get success anywhere it,is very important to know the basic of all the common terms.

Most of the advertising companies work on the basis of CPA, CPC, CPM and CPL advertisement.


CPM stand for cost per mille or cost per thousand. In simple word you will be paid when advertisement is shown to 1000 people or page views. In this method a fixed rate is decided prior to putting advertisement and you will be paid according to that.

CPC advertisement means cost per click. You will be paid when people will click your advertisement. The payout varies from few cents to few dollars. That’s how adsense and contextual advertisement works.   They place the relevant advertisement and you will get paid when people click on them.

CPA advertisement is by far one of the best payout advertisement program. In this advertisement module, when visitors click on advertisement and at the same time perform some action like buying an Ebook, buy a game , play a game or sign up for some course. The price range from cents to some 2-3 figure on dollars. Affiliate marketing is an example of CPA advertisement. You can see them in action at the sidebar.

CPL advertisement or cost per lead advertisement is almost similar to CPA advertisement but in this you will get paid when visitors perform doesn’t have to buy anything. In this advertisement program, user generally sign up for newsletter or fill up a survey form. The payout is much better then CPC advertisement in this program.

Though you need to be very careful while selecting the right advertisement program for your blog. If you have a high traffic blog, I recommend place a CPM based anywhere on the blog, like at the bottom of the page and make money out of it.

If you have a text based blog , placing the contextual advertisement at the right place will be beneficial for you.

CPA and CPL advertisement depend on your niche or kind of subscribers you have.

So I hope this article will help you understand the basic terms, in next update I will let you know about how you can make money online. So Make sure you subscribe to Shoutmeloud feeds.

Subscribe on Youtube

Article By
Harsh Agrawal is a blog scientist and a passionate blogger. He is blogging since 2008 & writes about Blogging, SEO, Make money online & tech. His blog, ShoutMeLoud receives 1 million Pageviews/month and have over 700K subscribers.


COMMENTs ( 12 )

  1. facewee says

    i also fail to apply for ad-sense, i see u guys saying it normally may take 1 months or more before a blog is ‘mature’ to easily get approval. i try bidvertiser before , i don’t think it is good enough. However, i really get a good idea from your site about all affiliate related information which i will try on later. However anyone of you try (CPA)linkshare
    Commision Junction,shareasale?? which 1 is better? any suggestion also for best (CPM) provider (easy approval) ? Thanks a lot .

    • says

      I have tried CJ and Shareasale, and they both work great. You just need to pick a product that you can pitch on your blog, grab affiliate link and start promoting it.

      • facewee says

        will it be easier to get approval by CJ? anyway i applying for Shareasale now, waiting for their approval ^^ thanks for reply.

  2. says

    Thanks for the post, Harsh. I just had a guess what those acronyms should mean but I was never sure. And finally today the big G (Google :)) helped me to find your post and the answer to my question. Thanks a lot and keep up the great work!

  3. Sagor says

    Hey Harsh,nice post man.. I didnt know about CPA and CPL.. Will u post about best paying CPL sites for new blogger.. Am new blogger so best paying CPM sites dont allow my site.

  4. TechacK says

    Yes, other terms like eCPM etc. must be mentioned.
    Also, it would be nice if u could recommend the top 2-3 services for each type of advertising.

  5. Rahul says

    CPA is best paying but hard to convert. most blogger failed to monetise CPA.
    Even Adsense and kontera and all pay you CPM or eCPM.