Differences between CPA networks and the CPA platform

Advertising on the CPA model has long been the most promising direction of marketing. Advertising agencies that charge money for naught, clicks on colorful buttons yielding no actual results, and impose advertising content on non-target audiences are not a proactive method of spending advertising budgets. It is clear that the future is behind CPA networks, since their scheme of work can bring together the advertiser and the target audience.

How the CPA network works

Every entrepreneur dreams of finding a marketer, who will not demand a lump budget for the advertising campaign, but rather a piece-rate payment proportionate to the benefits brought to the company — in other words, work for a percentage of the transaction, and according to the post-payment system. Nowadays, such marketers exist — all of the above are tasks that can be undertaken by webmasters through affiliate programs attracting quality targeted traffic for advertisers.

Of course, the webmaster can work alone, but there are multiple risk and costs. Hence, standard webmasters flock to the so-called CPA networks, which are essentially solutions for centralized management of the interaction process between customers and performers of promotional activities. The network protects users, provides them with convenient services and, in return, receives a commission fee.

Thanks to the CPA network, the advertiser does not need to negotiate the details of cooperation with webmasters directly, there is no need to develop tracking schemes for results. The affiliate network takes on the task of its participants. The advertiser is free to choose the channels to attract traffic, and the webmaster with sound reputations ensure stable running offers.

Regardless of the seeming advantages, weaknesses have emerged in the CPA model’s work process. The first point of concern is the huge losses the participants of the network incur, which can be avoided, if correctly anticipated. For the networks themselves, these are huge costs for the functioning of the system, for users — a hefty percentage, which, as demonstrated later on, is created out of thin air. Plus, over time, a negative feature emerges as a consequence of functioning. The “Per-Action” (CPA) payment is not an efficiency limit, because those who do not want to work and wish to profit, have found loopholes in the system and started pouring empty traffic, discrediting an excellent idea and averting a number of customers from the application of the CPA model in advertising.

It has become clear that the sector is in need of revision, “fresh blood” so to speak, and today it can be confidently said that a solution capable of satisfying all participants of the CPA ecosystem has been found. We are talking about a unified platform built on the principle of p2p, or equals among equals, on the basis of blockchain technology and within the performance marketing model framework.

Why using HOQU is more profitable than designing a proprietary partner network

We represent the world’s first decentralized marketing platform — HOQU, on the basis of which it is possible to create CPA-services, starting from partner programs and ending with partner networks and related products. HOQU will unite advertisers, networks and partners into a single platform, significantly reducing the financial costs of all market participants.

At the same time, the HOQU platform should in no way be confused with a sort of large-scale partner network. Yes, it can register webmasters and advertisers, but the platform provides them a basis for interaction, while not completely leveling professional CPA networks, which the participants of this huge market will still require for optimal operation. The platform provides the ability to build a full-fledged working CPA network. Moreover, this opportunity is provided free of charge.

Why will networks want to work on the HOQU platform and what is the difference between the platform and the network

The platform incurs a large number of financial losses, which are standardly carried by CPA-networks. The platform carries out the highest possible quality scoring based on the most advanced technologies of machine learning and artificial intelligence, assigning to each platform registered counterparty a digital “identity”, which, thanks to the fact that it is stored on a blockchain, cannot be altered or falsified. Moreover, we note that the HOQU platform provides this service to platform participants absolutely free of charge.

The next advantage is that webmasters register on the platform and all data is stored in a decentralized manner on the blockchain. What does this provide the network with? Absolute freedom. The need to find partners, to attract them, to store a database for them — all such functions become redundant. This approach is already implemented on the platform. All a user needs to do is make a selection according to the desired criteria. This is also a significant budget-saving feature. Currently, the network is forced to spend huge funds to attract webmasters. For this purpose, sponsored conferences, special events and so on are organized and held routinely. With HOQU, this becomes redundant as ​​all webmasters are already registered on a unified platform and can send offers and start working together fruitfully.

Another expense is payments. The system of paying rewards to partners involves a number of very tangible costs. To begin with, these payments must be correctly calculated, so as to pay only those that hit the target, according to the model of performance marketing. For new users, there is a need to organize an escrow service where the money will be stored, until it becomes clear that the user is not engaged in fraud. With respect to fraud, the network also incurs significant overhead costs. When fraud is discovered, it is necessary to remit to the accounts of advertisers the amounts deducted from them by the unscrupulous webmasters. Not to mention the fact that setting up and maintaining a high-quality fraud “anti-virus” system can be quite costly.

It is important to mention taxes and commissions for payment services. In total, very large percentages are charged, which the network pays from its revenues to third-party intermediary organizations.

Completely automated system of settlements on the blockchain

Now let us explore how the HOQU platform can help in this matter. The first aspect of these costs that the platform takes upon itself is making decisions about what, how and when to pay. Moreover, this is done simply and elegantly. Each network adjusts a number of settings to fit their needs and the payout system will function like clockwork.

Whichever scheme the network decides to work with, any of the options are available when working with the platform. The network is free to choose a CPA, CPL, CPC, CPS, CPI reward model or all of them together. The system will take into account these wishes and will begin making deductions exactly when the conditions recorded in the smart contract are fulfilled. The customer confirms the relevance of the lead, the smart contract carries out payment from the network account.

All mistakes are omitted. Thanks to the design of the blockchain-based solution, everything happens clearly, transparently, and is verifiable at all stages of the transaction by all parties involved. It is also important to note that remuneration on the HOQU platform is based on the model of the “advanced” version of CPA marketing — the performance marketing model. Payment is made not so much for the action as for a specific measurable result, which raises the prestige of the network in the eyes of customers to an unprecedented level.

Reputation and anti-fraud

Next comes the issue of fraud, or shaving, for which networks are forced to allocate huge budgets and expenditures, which are, in fact, pure losses that go into the pockets of fraudsters who do not belong in a civilized market. To begin with, a significant part of fraud is filtered by the platform still on the “approach” stage with the help of standard anti-fraud services, which, like all other services of the platform, are provided to all of its participants absolutely free of charge.

HOQU solves the issue of fraud mainly by means of the special organization of its own ecosystem. The workflow is built in such a way that fraud is possible within the framework of the platform only once, and then the partner who is “flagged” on this act becomes invisible and unattainable in the HOQU system. How is this resolved? Every participant in the system has a reputation. Reputation consists of a mass of indicators, such as the completeness of disclosure of personal data, information obtained from the scoring system and, finally, the immediate history of actions within the framework of the platform, or a personal log. Depending on how much the partner can be trusted, they are assigned a certain status on a scale of one to three, where one is just a registered user, and three is an authorized partner with a history and an excellent reputation. Depending on the degree of responsibility, the webmaster will be able to work with a particular network, but his status ratio for this cannot be lower than two — and even three for even the most conscientious networks. At the same time, the system of recognition cannot be deceived as fraud under the new account will be calculated and endowed with the reputation due. The blockchain system, artificial intelligence and machine learning are responsible for this breakthrough. Thus, fraud on the platform becomes a phenomenon so unprofitable that over time, according to the plan of the creators, unscrupulous activities shall eradicated in the ecosystem as a class of action.

Net savings with HQX token

Now let us consider the savings on taxes and commissions of payment systems, issued at the time of payments. It may sound all too tempting, but it is true as these costs are also reduced when the CPA network is transferred to the HOQU platform. At the same time, all activities remain one hundred percent legitimate. How is this achieved? Due to the fact that the platform is built on the blockchain, and the only unit of accounting on it is the internal token of the system — HQX.

The HQX token is a key component of the HOQU economy. It will perform the infrastructure function and is absolutely necessary for settlements between platform participants. The amount of remuneration for partner networks and partners will have both a fixed price in US dollars, and a floating rate in tokens.

What is it for? Calculations in tokens do not require the involvement of external financial organizations. All that will be needed in order to change them further to fiat currencies is applying to an exchange service, where the token will have real value.

No need to reinvent the wheel

What happens in the end? CPA networks cast off an incredible number of problems and most of the costs and losses previously incurred. This is beneficial, which means that it is profitable for both advertisers and partners, since it allows one to significantly reduce the percentage charged for network services currently — an unthinkable, sometimes up to 45% commission. At the same time, the HOQU platform provides the whole range of its services free of charge to all participants. What the system earns is the commission from transactions conducted on the transaction platform, an extremely modest commission — only half a percent.

Summarizing, let us briefly answer the question as to why it is advantageous for networks to work with HOQU.

1. The platform allows one to create partner networks. HOQU does not make films, but builds the TV to show them on.

2. It is possible to create an affiliate network, or simply use HOQU. Again, using an analogy — one can, of course, design and assemble their own car from scratch and receive a decrepit bucket of bolts in the end, or one can use the HOQU engine and get a Mercedes as the end result.

3. In partner networks, most costs are allocated to marketing to attract webmasters. With HOQU, all webmasters are already in the blockchain system, eliminating the need to spend additional funds.

4. HOQU does not require expenditures on developers — one can immediately use the available option for free.

It is absolutely obvious that the main trend of the modern advertising business is the transfer of processes to decentralized platforms. The immediate future is precisely behind such systems, so classic networks will significantly lose to networks on the HOQU platform — at least because of fewer webmasters and the lower quality of their work. All involved profit from cooperation with HOQU. This is the highest goal of performance marketing and of a developed market in general.