PPS

Stands for "Pay Per Sale." PPS is a type of online advertising where a web publisher is paid a commission for each sale generated by his website. It is a more specific version of the CPA model and is commonly used in affiliate marketing.

Most online ads use the PPC model, in which the website owner receives a small amount for each click on an advertisement banner or link. While these types of ads can generate lots of traffic for websites, they do not guarantee sales or conversions. By running PPS ads, merchants only pay for clicks that lead to sales.

Since merchants only pay commissions on sales made from PPS ads, the commissions have to be high enough to make it worthwhile for web publishers to run them instead of PPC ads. Therefore, commissions over 50% are not uncommon for high-margin items, such as software and online services. Physical products with lower margins often have commissions under 10%. However, if they have high average order values (AOVs), sales with low commissions can still produce high payments for publishers.

NOTE: To maximize revenue, many websites include both PPC and PPS ads.

Updated May 30, 2014 by Per C.

quizTest Your Knowledge

Which of the following is a learning management system?

A
Moodle
0%
B
Weebly
0%
C
GoDaddy
0%
D
LinkedIn
0%
Correct! Incorrect!     View the Moodle definition.
More Quizzes →

The Tech Terms Computer Dictionary

The definition of PPS on this page is an original definition written by the TechTerms.com team. If you would like to reference this page or cite this definition, please use the green citation links above.

The goal of TechTerms.com is to explain computer terminology in a way that is easy to understand. We strive for simplicity and accuracy with every definition we publish. If you have feedback about this definition or would like to suggest a new technical term, please contact us.

Sign up for the free TechTerms Newsletter

How often would you like to receive an email?

You can unsubscribe or change your frequency setting at any time using the links available in each email.

Questions? Please contact us.