Pay Per Sale

Posted in Marketing and Strategy Terms, Total Reads: 436
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Definition: Pay Per Sale

Pay-per-sale or PPS refers to a payment model where payment for advertisement or commission is made on basis of actual sales transactions. In such a model, the advertiser pays only for sales generated for the destination site according to a pre-determined agreed upon commission rate.


It is very favourable to the advertisers as they pay only for actual sales generated. At the same time it is least favourable to website owners or publishers as they don’t get paid for just putting up the advertisement. The publisher is concerned not only with the amount of traffic generated by the site but also with the appeal of advertisement and the functioning of destination selling portal. Such a scenario safeguards the advertisers from incentivized or low quality traffic and provides legitimate conversions.


Online Sale Tracking - It is intensively used in online advertisement where the website owner or publisher gets paid according to the number of sales which are generated directly by the advertisements on its website. It is not practically possible to track each and every sales generated by an online advertisement, but there are methods which track the buying behaviour of consumers and ensure that the deserving advertisements get their due.


Telephone Call Tracking: There are several companies which sell their products through phone calls. They call their prospective customers on phone and try to sell their products and close the seal on phone itself. In such a marketing model, payment is done according to the calls which resulted in actual selling of the products.

 

Search Engine Tracking: It is just a variant of online sale tracking, where the major traffic source is the search engine.


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