Cost per sale (also known as CPS, pay per sale, PPS) is a pricing model in digital advertising where advertisers pay every time the sale is made because of the publisher’s efforts. The commission for a sale is agreed upon between the parties in advance.
This pricing model is one of the least popular and you can barely find it in ad networks. It is a great option for advertisers. Unlike pay per impression, click, or lead models, they pay for the actual profit and have zero financial risks. However, publishers are not happy with the model. They have to put in too much effort to make a sale. Sometimes all goes to waste because the advertiser’s website is not attractive enough.
Cost per sale can still be found in the advertising world though. It is mostly adopted in affiliate marketing and by independent publishers. However, advertisers have to work on their websites as well to generate more sales. Otherwise, publishers may drop the agreement.
