Posted by Fox on July 30, 2007 at 3:03 PM

Johnder Perez over at webhostb2b.com explains what CPS (Cost Per Sale) means.

WHAT IS CPS?

CPS is simply known as cost-per-sale. The most popular model that uses this method is the widely used affiliate model.

Affiliates are usually paid for each sale that they generate as a result of displaying an online marketer’s advertisements on their web site.

The popularity and widespread acceptance of affiliate systems have illustrated how effective it is to run a campaign using the CPS model.

Online marketers reduce the risk and increase the return on investment by paying only when the action results in a sale. This is effective in many ways. For example, the affiliate is bearing total responsibility for the campaign, but is induced because of the earning potential that the company is willing to offer.

By earning a percentage of the sale, for example, the affiliate would simply have to implement the campaign and in most instances it is not a difficult or costly thing to do.

The company, on the other hand, reaps the benefits of widespread exposure especially in affiliate networks that have many members, yet they only incur the cost when a sale is transacted.

Source: webhostb2b.com

More Jargon Busting:
What is RON? (Run of Network)
What is PPS? (Pay Per Sale)
What is CPL? (Cost Per Lead)
What is PPC? (Pay Per Click)
What is CPS? (Cost Per Sale)
What is CPC? (Cost Per Click)
What is CPA? (Cost Per Action)
What is CTR? (Click Through Rate)