What does Cost Per Sale (CPS) mean?

Cost Per Sale (CPS), also known as Pay Per Sale (PPS), is a performance-based pricing model where affiliates receive commission only when their referrals result in actual sales. This model aligns affiliate compensation directly with revenue generation, making it popular in e-commerce and retail affiliate programs.

• E-commerce product sales
• Subscription sign-ups
• Service purchases
• Software licenses
• Course enrollments

• Unsustainable commission rates
• Poor tracking implementation
• Unclear terms and conditions
• Inadequate return handling
• Commission structure complexity

• Clear commission structure
• Reliable tracking system
• Fair return policy
• Transparent reporting
• Regular rate optimization

How do I set CPS rates?

Consider product margins, industry standards, competitor rates, and desired profit margins. Account for operational costs and program expenses.

How are returns handled?

Establish clear policies for commission clawbacks on returns, typically involving commission reversal or deduction from future payments.

Should I use tiered rates?

Tiered rates can incentivize higher performance but should be simple to understand and achievable for affiliates.

• Sales tracking platforms
• Commission management software
• Analytics tools
• Payment processing systems
• Reporting dashboards

• CPS Rate Guide
• Commission Structure Template
• Return Policy Guide
• Program Terms Template

• Monitor competitive rates
• Test different structures
• Clear communication
• Regular performance reviews