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.

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