Pay Per Click vs. Pay Per Sale
Just a look at the problem from the side of an affiliate program. Definitely, we prefer to pay on the "per sale" basis. Otherwise very soon you will be cheated by some dishonest partners who'll be generating absolutely worthless traffic. So, you'll have to pay less for all clicks, including those which are good. This way what economists call "adverse selection" is being created.
But maybe there are some strong pro-s for the Pay Per Click system?
Can you share your experience with both?
Best regards, Seopharmacy
re:Pay Per Click vs. Pay Per Sale
Because pay-per-lead programs are generally designed to promote some type of free product or service, where the visitor is given away something for free and is not required to buy anything, the conversion ratio is usually higher than both PPC and PPS.
For example, a fellow internet marketer, Scott Boulch, was paying "half a dollar each time someone you refer downloads the Free eBook!"
Scott had 30,000 visitors download his free report in around 10 days, and many internet marketers made a lot of half-a-Dollar-per-visitor money!
That's the power of Pay Per Lead.
You can earn eanywhere from $0.50 all the way up to $50 and even beyond.
What other monetization model can give you $35, $45 or $100 per non-cash conversion action, for giving your visitors free stuff?!
In fact, what other monetization model can give you half a dollar in return for giving visitors a free report?! Not PPC and not PPS.
You can safely say that Pay Per Lead is one of the easiest ways to make money online without selling products or services.
Pay Per Lead Vs. Pay Per Sale Comparison
Why It's easier to make money with Pay Per Lead than Pay Per Sale (Affiliate Sale)
Pay Per Sale: Visitor is required to make a purchase in order for you to make money.
Pay Per Lead: Visitor is not required to make any purchase in order for you to make commissions.
Pay Per Sale: Since there is something to buy, the conversion ratio is lower than Pay Per Lead.
Pay Per Lead: Since there is nothing to buy, the conversion ratio is higher than Pay Per Sale.
Fact: It is easier to make people take some form of action when you give away something for free! The resistance threshold is much lower.
Pay Per Lead programs generally pay lower commissions than Pay Per Sale programs, however, the higher conversion ratios often translate into higher overall profits.
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I think the biggest advantage of the pay per click system is the depth of distribution. While I understand the advantages of the pay per sale approach, the size of the potential audience is much greater for ppc. I think that is a distinct advantage, and while you can't completely eliminate the worthless traffic you mention.
Pay per click (PPC) is an internet advertising model used on websites, where advertisers pay their host only when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system.
Pay-per-Sale or PPS (Sometimes referred to as Cost-per-Sale or CPS) is an online advertisement pricing system where the publisher or website owner is paid on the basis of the number of sales that are directly generated by an advertisement. It is a variant of the CPA (Cost-per-Action) model, where the advertiser pays the publisher and/or website owner in proportion to the number of actions committed by the readers or visitors to the website
Pay per click (PPC) is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher when the ad is clicked.
Pay-per-sale is an online advertisement pricing system where the publisher or website owner is paid on the basis of the number of sales that are directly generated by an advertisement.