"Pay Per Sale (PPS)" – Affiliate Marketing Glossary
A commission structure where affiliates are paid only when a sale is made through their referral.
In the Pay Per Sale (PPS) model, affiliates earn a commission only when the referred customer makes a purchase. This model minimizes risk for the merchant, as payments are made only after revenue is generated, making it the most common commission structure in affiliate marketing.
PPS incentivizes affiliates to target audiences more likely to convert and focus on quality over quantity in their promotional efforts. Commissions are often higher in this model to compensate for the increased effort and risk taken by affiliates. Success requires understanding customer needs and providing valuable pre-sales education.
SaaS PPS programs often include recurring commissions for subscription renewals, creating ongoing income streams for affiliates. Some programs offer tiered commission rates based on subscription levels or customer lifetime value, aligning affiliate incentives with business objectives.
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