What is pay-per-sale (PPS) in affiliate marketing?

November 18, 2024

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What is pay-per-sale (PPS) in affiliate marketing?

In affiliate marketing, Pay-Per-Sale (PPS) is a compensation model where an affiliate earns a commission based on the sale of a product or service that is referred by their marketing efforts. Under this model, the affiliate receives payment only when a customer completes a purchase through the affiliate’s referral link.

Key points of PPS:

  • Commission: The affiliate earns a pre-determined percentage or a fixed amount of the sale price.
  • Conversion Requirement: The affiliate’s referral must result in a completed sale for the affiliate to earn the commission.
  • Payment Trigger: Unlike other models like Pay-Per-Click (PPC) or Pay-Per-Lead (PPL), affiliates are paid only after the customer makes a purchase, not just for clicking on a link or filling out a form.

For example, if an affiliate promotes an online store and sends traffic to their website, they would earn a commission if someone makes a purchase through their referral link. The commission could be a percentage of the sale or a flat fee.

PPS is one of the most common and profitable models in affiliate marketing because it rewards affiliates based on actual sales and conversions, which is the ultimate goal for many businesses.

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