What is PPS (pay-per-sale)?
As we’ve discussed above, pay-per-sale marketing is a performance-based model where marketers only pay for the sales that they get. This model is also referred to as revenue share, cost per acquisition (CPA), or cost per action (CPA). The main difference between these models is how marketers can track the ROI of their campaigns. For example, in PPS, marketers pay only for the sales they get. However, in CPA, marketers have to pay for the entire campaign cost but only get a cut if they get a sale. In CPA, marketers also have to track their ROI manually. Again, marketers only pay for the sales they get.
How Does Pay Per Sale Marketing Work?
A PPS campaign works when an advertiser signs up with a publisher—the company that hosts their ads for them. The advertiser and publisher come up with the terms and conditions of their campaign, like how much the advertiser will pay per sale, how much the publisher will keep per sale, and how many impressions (the number of times an ad is displayed) the publisher will provide. The advertiser pays the publisher only if a visitor to the publisher’s site makes a purchase. The advertiser does not pay for clicks or impressions that do not result in a sale.
Your Ultimate Guide to Affiliate Commissions
An affiliate commission is a percentage that affiliates earn when they drive traffic or sales to advertisers' products. Altogether at the end of the month, all commissions amount to a publisher’s salary. The average affiliate commission rate varies greatly depending on an affiliate vertical and a product type, but it is common for the commissions to vary between 5 and 30%.
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