Pay Per Sale
Pay-per-sale or PPS is an online advertisement pricing system where the publisher or website owner
A webmaster , also called a web architect, web developer, site author, or website administrator is a person responsible for maintaining one or many websites...

 is paid on the basis of the number of sales that are directly generated by an advertisement. It is a variant of the CPA (cost per action
Cost Per Action
Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....

) model, where the advertiser pays the publisher and/or website owner in proportion to the number of actions committed by the readers or visitors to the website.

In many cases, it's not practical to track all the sales generated by an advertisement. However, it is more easily tracked for full online transactions
Electronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...

 such as selling songs directly on the internet. Unique identifier
Unique identifier
With reference to a given set of objects, a unique identifier is any identifier which is guaranteed to be unique among all identifiers used for those objects and for a specific purpose...

s, which can be stored in cookies
HTTP cookie
A cookie, also known as an HTTP cookie, web cookie, or browser cookie, is used for an origin website to send state information to a user's browser and for the browser to return the state information to the origin site...

 or included in the URL, are used to track the movement of the prospective buyer to ensure that all such sales are attributed to the advertisement in question.

Telephone Call Tracking Pay-per-Sale:
Some companies handle transactions "offline," meaning sales driven by online traffic are closed via inbound telephone calls or in person rather than online. In these cases, a cookie-based rotating system of telephone numbers can be used to accurately trace a phone call to the source online visitor. This way, a phone call that converts into business can be traced to the keyword search term that drove the phone call. As a result, bids on the source traffic can be appropriately adjusted and managed.

Pay-per-Sale Search Engine Marketing:
Pay-per-Sale Search Engine Marketing is a variant of pay-per-sale, whereby the traffic source is largely search engine traffic such as that from Google's AdWords "pay-per-click" system. The business model means that merchants no longer bear the cost of "pay-per-click"; instead, the "pay-per-sale" provider takes on the risk of conversion.

CPS belongs to the larger family of CPA, which is different from Cost Per Impression
Cost Per Impression
Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...

 in which advertisers pay every time their advertisement is displayed, irrespective of whether the display created any action on the part of reader or visitor to the website or not.

Affiliate Networks
Affiliate networks
An affiliate network acts as an intermediary between publishers and merchant affiliate programs. It allows website publishers to more easily find and participate in affiliate programs which are suitable for their website , and allows websites offering affiliate programs to reach a larger audience...

 in Online Marketing
: Affiliate Networks usually offer the "pay-per-sale" business model and have done so since inception. However, there is typically an upfront set-up fee, as well as monthly minimum charges for the advertiser, in addition to relatively stringent requirements around entry into the network to begin with. The industry has four core players: the merchant (also known as 'retailer' or 'brand'), the network, the publisher (also known as 'the affiliate'), and the customer. Typically, affiliate networks such as ValueClick or Commission Junction will connect merchants (advertisers) with publishers, or owners of sites, which can send traffic to the merchants' sites in exchange for a bounty, or commission for each sale delivered.

See also

  • Affiliate marketing
    Affiliate marketing
    Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts...

  • CTR
    Click-through rate
    Clickthrough rate is a way of measuring the success of an online advertising campaign. The clickthrough rate of an advertisement is defined as the number of clicks on an ad divided by the number of times the ad is shown , expressed as a percentage. For example, if a banner ad is delivered 100...

     - Click-through rate
  • CPC - Cost Per Click
  • CPI
    Cost Per Impression
    Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...

     - Cost Per Impression
  • CPM - Cost Per Thousand
  • eCPA - Effective Cost Per Action
  • Internet marketing
    Internet marketing
    Internet marketing, also known as digital marketing, web marketing, online marketing, search marketing or e-marketing, is referred to as the marketing of products or services over the Internet...

  • Revenue Share
    Revenue sharing
    Revenue sharing has multiple, related meanings depending on context.In business, revenue sharing refers to the sharing of profits and losses among different groups. One form shares between the general partner and limited partners in a limited partnership...

     - Cost derived from advertiser income
  • VPA
    Value Per Action
    Value Per Action refers to an online marketing business model similar to the Cost Per Action model. While Cost Per Action provides a low risk arrangement in which the seller only pays an advertising fee when a consumer takes action Value Per Action extends that model to add revenue sharing with...

     - Cost Per Action variation that transparently balances incentives between vendors and consumers
  • Compensation methods
    Compensation methods
    Compensation methods , Pricing models and business models used for the different types of internet marketing, including affiliate marketing, contextual advertising, search engine marketing and display advertising.-Predominant compensation methods in affiliate marketing:The following models...

  • Online advertising
    Online advertising
    Online advertising is a form of promotion that uses the Internet and World Wide Web to deliver marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, blogs, Rich Media Ads, Social network advertising, interstitial...

  • Tutorial on the CPA / CPM / CPC / dCPM advertising models
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