CPS in affiliate marketing: Definition, Meaning & Top Offer

What is CPS in affiliate marketing? This is a concept that is no longer new but is growing stronger and stronger in recent times, especially when e-commerce platforms and social networks have almost completely changed traditional purchasing thinking.  Let’s learn in detail about what CPS is, its advantages and disadvantages, and the successes of Affiliate Marketing. Find out with Adsnextgen through the following article!

Concept and meaning of CPS affiliate marketing

What is the main concept?

CPS marketing meaning is the acronym for Cost Per Sale – a term in the field of online marketing and advertising. This is a method of pricing an advertisement based on the number of sales made through that advertisement.

In the CPS model, the Business only pays the publisher when a purchase is made through that ad. This is different from other advertising models such as CPM (Cost Per Mille – pricing per thousand impressions) or CPC (Cost Per Click – pricing per click).

By exploring the relationship between CPS and other pricing models like CPM (Cost Per Mille), CPC (Cost Per Click), and CPA (Cost Per Action), you can gain a comprehensive understanding of how different strategies impact affiliate marketing campaigns.

>>> Related Article: CPA Networks Affiliate Marketing: Definition, Benefits & Top Offers

What is CPS in affiliate marketing? And the CPS marketing?

So, what is CPS in affiliate marketing? CPS is understood to be used to pay advertisers after customers purchase products and have paid in full.

Sellers will receive money from customers by bank transfer or COD payment. To register to buy, customers will perform the following activities on the product advertising page: click, fill in order information, and receive, and pay in the most appropriate forms.

Formula to calculate cost per sale in detail

The advertising team must first establish a campaign budget and timeframe before calculating the cost per sale. Every sale made during the chosen time frame is monitored after the ad is up. The CPS affiliate is then calculated by dividing the campaign’s overall cost by the total number of sales, as was previously explained.

CPS = Total cost / Sum of sales

When calculating CPS, all aspects of a campaign must be considered. To better understand cost per sale and advertising intensity, there are several other factors that should be measured. This includes:

Lead Conversion – The average amount of time employees spend on marketing activities that convert leads into viable sales prospects. This conversion should take into account benefit costs, direct wages, and payroll taxes.

Convert Prospects to Customers – The average time it takes for a potential buyer to convert into a paying customer, and the activities required to make the conversion, such as phone calls, proposals, and video meetings. The costs of these activities should be considered.

Web-Based Marketing – A corporate website can be a significant recurring cost for a business. When calculating the total investment in a website, consider both the initial cost of creating the website and the cost of maintaining and updating the website.

Customer Service – Amount spent on customer service training and support. This factor is an important consideration when calculating CPS because customer service quality is directly related to customer retention, or the ability to retain customers and repeat business.

Commission – Many sellers charge a commission – meaning they get paid based on the size of their order. The larger the order, the higher the compensation. The cost of these commissions must be taken into account in the CPS calculation process. Above is the calculation formula to help you answer the question of what is cps in affiliate marketing.

>>> Explore more: Which is better CPA Marketing vs Affiliate Marketing?

Why should you use CPS in digital marketing?

Recently we learned “What is CPS in affiliate marketing?” and why is it commonly used and important in digital marketing today. Cost per sale (CPS) is an important metric in affiliate marketing because it helps measure the success of your affiliate campaign. This allows marketers to calculate the exact amount they spend on each sale, thereby determining the return on investment (ROI) of a marketing campaign, including ROI affiliate marketing. By tracking CPS, marketers can better decide which campaigns are most profitable and which ones need to be adjusted or discontinued.

• Easier to optimize: CPS marketing strategies are designed to help you report and actively use data in real-time. Because you have the ability to use data to your advantage, you can gain useful insights and optimize your marketing campaigns. Advanced analytics help you monitor cost-per-acquisition and frequency cap implementation. This gives you accurate data and a wealth of metrics that you can use to fine-tune your campaign placements and targeting.
• Greater coverage: An associated affiliate network brings huge advantages to CPS campaigns. A large network can help you reach a wide range of customers and greatly increase your reach and visibility. You can target entirely new customer segments virtually anywhere in the world and develop strategies based on market developments.

• More control: CPS provides publishers and advertisers with a high level of control. The model established a strong correlation between banner quality campaign design and ultimately sales volume. Since you can control the quality of your banners and content, you can have a significant impact on the number of sales achieved. The CPS model also allows you to control other factors such as bot-generated clicks and IP addresses.
• Longer exposure time: One of the biggest advantages of the CPS affiliate network is that you can display your banner on affiliate networks indefinitely. Other campaign models, such as cost-per-action (CPA) and cost-per-install (CPI), don’t allow you to take advantage of this. This means that you have to remove the banner from the affiliate site after a certain period.
• Publisher-focused: It is known that CPS not only provides advantages to companies compared to other traditional models but also ensures the interests of publishers. This approach ensures publishers have more control. This is a low-risk strategy that drives new customer traffic and allows you to track your spending so you can optimize your budget. In the CPS model, you only pay a commission when the lead generated results in a completed sale or purchase.

With the above utilities, Adsnextgen has helped you answer your questions “What is CPS in affiliate marketing?”

>>>> Exploring “affiliate marketing conversion rates” can help you evaluate the profitability of your affiliate campaigns

List of 5 costs per sale (CPS affiliate network, programs, and best offers)

As mentioned above, the advantage of CPS lies in its low risk and high profits. You only have to pay the cost when the order is successfully received. In addition, your ad will be displayed thousands of times for free. As long as no purchases are made on that ad. The commission received from CPS is quite generous. So for good introducers, this is truly a fertile land that cannot be ignored. Besides, the undeniable advantages of CPS: Are bringing real sales to sellers, reducing virtual purchases, classifying customers, and having accurate big data sources for subsequent campaigns.

Above, Adsnextgen has helped you get the answer to the question What is CPS in affiliate marketing? Below are 5 affiliate networks that provide CPS services that you can refer to:

>>>> Understanding 10+ Best CPI Networks For Highest Commission in 2024

Adsnextgen

If you don’t know CPA Marketing, then come to ADSNEXTGEN. ADSNEXTGEN is a marketing affiliate network agency in the world. We are a provider of CPA network and CPA traffic solutions to help our partners grow by connecting the right people together and helping your business achieve success.

ClickDealer

ClickDealer, a GDM Group company, provides performance marketing solutions to publishers, advertisers, and agencies worldwide. The company provides a full range of advertising services to meet clients’ specific key performance indicators.

MyLead

My Lead offers over 4300 affiliate programs (including the most popular – Email Submission, Credit Card Submission, Video on Demand, Smart Links, Downloads, and Appointments), five monetization models, dozens of different categories with different services and free monetization tools such as content lockers and comparison engines. My Lead will help business owners answer qulike eWhatns “What is CPS in affiliate marketing?”

CrakRevenue

CrakRevenue is a leading international CPA network specializing in web traffic monetization and online marketing solutions. Driven by performance and results, CrakRevenue is leading the next phase of affiliate marketing with a team of highly skilled professionals. Our goal is to provide a unique experience for our respective affiliates and advertising networks.

Amazon Associates

Amazon Associates is one of the most famous CPS networks globally, with a variety of products and services so you can easily choose the product you want to do affiliate marketing. And if you are wondering about the question of what is cps in digital marketing, this network will have specific tutorials for beginners.

Amazon Associates is an affiliate program of Amazon Inc. It offers affiliates the largest selection of items to sell and earn up to 10% commission on them. The affiliate registration process does not require third-party approval, allowing affiliates to quickly sign up, choose from the millions of products Amazon offers, and start selling. To start selling a specific product, the Amazon Associates platform generates a tracking link for that specific page, which can even be shortened for convenience.

So, with the information mentioned in the article, Adsnextgen can help businesses answer the question of what is CPS in affiliate marketing. This is a familiar concept in business, helping businesses ensure higher conversion rates. However, it is also necessary to coordinate closely with affiliate partners to get the best sales results!

>>> Further Reading

• SOI affiliate marketing (Single Opt-In): Definition, Pros and Cons
• DOI Affiliate Marketing: Difference with SOI? Which better?

AdsNextGen Team

Adsnextgen Team with more than 5 years of experience providing marketing solutions and a solution provider for CPA traffic, CPA affiliates networks with the best incentives. We are committed to bringing advertisers, publishers, and businesses the best incentives and marketing solutions.