The CPS model is one of the strongest, longest-lasting and most consistently profitable affiliate marketing models you can use. To give you an idea of what advantages you get with CPS, let’s look at the details of how it works and why it is different than other revenue models.
Difference between CPA and CPS
In the CPA (Cost per Acquisition) model, affiliates are paid per lead or per download. CPS takes the process one step further and affiliates are paid when a customer purchases the product.
That being said, the CPS commission structure is different and, arguably, more lucrative. For example, in the CPA you get a $2.25 commission per install, but in the CPS you get $25 per sale (75% commission) and a 75% commission on any upsells in the cart. That’s the beauty of CPS — Getting paid for making a sale.
Consider Running CPS Offers
Now, it stands to reason that if you can drive the traffic that ends up generating a sale, then you can also take the next step and make the sale itself. And why not? There’s a lot more money to be made by actually closing the deal.
- For example, take one of the top-converting products in our catalogue, Mackeeper. It’s a perfect “apples to apples” comparison that illustrates this point perfectly: With CPA you earn $2.25 per install of Mackeeper, but with CPS you get $25 per sale.
CPA and CPS use similar skills
Most affiliate marketing models require a very similar skill set, so getting into CPS isn’t as difficult as people sometimes think. Let’s take a look at the reasons why any dedicated affiliate can learn CPS:
• CPS and CPA have the same tracking and traffic sources
• CPS creative is easy and straightforward, and most of it is already provided by the merchant.
• With CPS, it’s easy to set and measure your targets because the fees and commissions are 100% transparent.
• CPS is scalable (i.e, you can grow or shrink campaigns without having to restructure them) and international (you can profit from markets all around the world with minimal trade restrictions).
It all comes back to that one simple fact: When you’re running a CPA offer you know that there’s a sale somewhere in the funnel. And, you also know that you’ll be compensated for completing that sale.
So really all you need to be is comfortable working with search engines, PPC and display ads, and you have the tools to be successful in CPS.
CPS payouts are transparent
Here are two important ways that CPS is a transparent and trustworthy paradigm:
- CPS networks don’t scrub (scrubbing is the % taken by the CPA networks, networks like RevenueWire have a set cart fee and no network fee).
- CPS payments are 100% transparent, which means when you make a sale you’re compensated for it.
And, where CPA affiliates often think in terms of fixed payout, the CPS world is more focused on minimizing refunds, charge backs, and hold backs by delivering quality products to the customer as advertised.
CPS campaigns are designed to be sustainable
It’s very important to consider the viability of long-term profit and sustainability of affiliate marketing. CPS has some built-in stopgaps that help protect affiliates against all kinds of adverse market conditions and keep you profitable in the long run.
- CPA campaigns have a ceiling – usually around 3 months – if you don’t meet quota in that time then you have to start over again and look for a new campaign.
- CPS campaigns are designed for the long run –– we have affiliates that are running the same campaign landing page they launched years ago, and it’s still performing well to this day.
- CPS networks also have a direct relationship with the merchant so that the “middle-man syndrome” is minimized, things get done faster and more efficiently, and when you need answers they’re only one email or phone call away.
- CPS networks are stable because they collect the money from the consumer, deliver it to the merchant, and the affiliate gets their commission in transit.
- Since CPS campaigns are long term, there’s more time to build and optimize your campaigns and less pressure to take short cuts.