Cash Free Advertising

Pay for the ad after you make a sale!

Cash free advertising is a relatively new form of advertising that implements the methodology of cost per acquisition (CPA) commonly used in the online e-commerce world and transfers the “pay-per performance” structure to the brick and mortar business. Cash free advertising campaigns allow businesses to forgo the upfront cost of advertising and only pay when the advertising medium generates a measurable sale.

Typically, with advertising using the traditional method, a business would map out a budget for their advertising and pay upfront for the campaign. This could be a billboard, radio spot, a TV commercial, mailers and even online marketing. After it runs the business would then wait for the customers to arrive. With cash free advertising the business pays nothing upfront, the advertising campaign runs and the business only pays for the advertising when the customer makes a purchase. This method eliminates the risk of paying for ineffective advertising campaigns and affords the business the ability to accurately track the return on that investment.

Another great option with these programs is that in some cases the business owner can also pay for the advertising using the goods or services of the business. This creates a unique 3-way barter system where the business owner pays for the advertising campaign at its cost of goods sold (COGS) while still charging the customer full retail price for products sold and services rendered. This option is great for a business with low COGS and a high gross profit margin. Assuming that those businesses also have relatively low fixed costs, it creates a massively discounted advertising payment strategy.

Cash free advertising is changing the way that businesses pay for advertising and is being done with new technologies that track the way consumers spend money. With state of the art tracking software through point of sale systems advertisers can now guarantee that the advertising worked. The key element is that if the campaign does not work the business does not pay for it, thus eliminating the most critical risk in advertising.