What is Cost Per Sale/Pay Per Sale in Affiliate Marketing?
Cost Per Sale Model is a cost-effective and efficient way to sell services or products. However, few businesses bank on it. They are either too into CPC and CPM, or just don’t have an idea about this model. If you are curious about what CPS is, continue to read below. You might find yourself wanting to take a closer look at it and seeing if it will be a better fit for you.
High profit, low risk– You pay the affiliates only when an actual sale occurs. This means the end customer has to pay you first for the service or product and it is when you pay your affiliates. Unlike PPC campaigns, where you aren’t even sure if there would be any conversion, the risk is very little with CPS.
Less room for frauds– Ad fraud costs the industry over $7.2 billion every year. Mostly occurs in CPM and CPC models. This isn’t probable with CPS. Fraud is very unlikely here. Some affiliates can ask their acquaintances to purchase your services and products. And just when you give out the money for the sale, the whole order is cancelled. This rarely happens with CPS and is contingent on your tracking system and affiliate clauses.
Helps in SEO– You get lots of backlinks when the affiliates try to sell your services or products via their websites and other platforms. This enhances your ranking on SERP and improves your lead. You need to be wary of backlinks from bad websites. Yahoo and Google penalizes you for this.
Effortless marketing– When your affiliates are trying to sell, they are marketing your services or products, your brand. You don’t have to use any energy. And the added cost of PPC on search engines and campaigns on social media platforms is really diminished.