Sales Loves MarketingPay per sale (PPS) is a payment model where the advertiser pays only when someone buys. A publisher or affiliate sends visitors to the advertiser's site, and earns a commission on each purchase those visitors make. Clicks and visits on their own earn nothing.
PPS is one of the main payment models in affiliate marketing. The commission is usually a percentage of the order value, but some programs pay a fixed amount per sale.
How does pay per sale work?
- The publisher joins a program, either directly with the advertiser or through an affiliate network.
- They get a unique tracking link and place it in an article, review, newsletter or video.
- A visitor clicks the link. The click is recorded, often with a cookie or a click ID passed to the advertiser.
- The visitor buys. The advertiser's system matches the sale to the publisher's click.
- The publisher earns the agreed commission, paid out on the program's schedule.
Pay per sale vs other payment models
| Model | Advertiser pays when | Risk sits mostly with |
|---|---|---|
| Pay per sale (PPS) | A referred visitor buys | Publisher |
| Cost per lead (CPL) | A visitor signs up or fills in a form | Shared |
| Cost per action (CPA) | A defined action happens, which can be a sale or a lead | Depends on the action |
| Cost per click (CPC) | A visitor clicks | Advertiser |
An example from B2B
A SaaS company runs a partner program. Consultants and review sites that write about its category get a tracking link. When a reader starts a paid subscription through that link, the partner receives a share of the payment. The company pays nothing for the many readers who click and leave, so its acquisition cost stays tied to revenue. For more on setting this up, see how to build a partner program for your SaaS.
Pros and cons of pay per sale
For advertisers
- You only pay for revenue, which keeps customer acquisition cost predictable.
- You don't pay for traffic that doesn't buy.
- You depend on accurate tracking to credit the right partner.
For publishers
- Earnings can be high when the audience is ready to buy.
- Traffic that doesn't convert earns nothing, so the publisher carries the risk.
- Tracking gaps mean some sales may never be credited.
Tracking limits to know about
Cookie-based tracking is less reliable than it used to be. Safari's tracking prevention, for example, blocks third-party cookies by default and deletes cookies created by JavaScript after seven days without user interaction. Server-to-server tracking with a postback URL is one way programs reduce their reliance on browser cookies.
Rules for publishers
- Disclose the relationship. The FTC's endorsement guidance says to tell readers clearly and close to the link that you earn commissions on purchases. "Affiliate link" alone may not be clear enough.
- Mark the links. Google asks for paid links to carry rel="sponsored" (or rel="nofollow").
- Add real value. Google's spam policies treat pages that only copy merchant descriptions next to affiliate links as thin affiliation. Original reviews and comparisons are fine.
Related terms
Frequently asked questions
What is the difference between pay per sale and cost per action?
Pay per sale is a type of cost per action (CPA) where the only action that counts is a purchase. Under broader CPA deals, the advertiser may also pay for a sign-up, a trial or a form fill.
Who carries the risk in pay per sale?
The publisher or affiliate. They spend time and money sending traffic, and if no one buys, they earn nothing. The advertiser only pays once revenue comes in, which is why the model is popular with advertisers.
Do pay-per-sale links need to be disclosed?
Yes. The US Federal Trade Commission says publishers should disclose clearly and conspicuously that they earn a commission on purchases made through their links, close to the recommendation. Google also asks for paid links to carry rel="sponsored" or rel="nofollow".