PPS programs are the single most used commission model for affiliate
programs online. The reasons are many, but the simplicity and fairness
of this commission model are two important factors.
Not to long ago - before google adsense - getting paid for anything
else than sales were uncommon. In most niches, affiliate programs
offering a PPC or PPL commission where unheard of.
Other commission models - mainly pay per click - were only used in a
few, highly competitive niches. As many other things in the affiliate
marketing business, the first websites offering a PPC option were of an
adult nature - or pornography if you will.
Today, a PPC affiliate program can be found in most niches and other commission models are growing in numbers every day.
Even though the number of affiliate programs offering other
commission models are more today than it was yesterday, they are still vastly outnumbered by the PPS alternatives.
This means that, even though it's tempting to get paid per click, the
chance of finding the best affiliate program is higher if you search
among the PPS alternatives. As there are many affiliate programs
competing for the same crowd of affiliates, they use the only means
they have to compete; size of commission.
This should be easy enough to compare, but if you look closely you'll
see a few other factors important for the overall performance. An
affiliate program offering a high, percentage based commission isn't
always better than a program of lower commission. You need to look at a
few things to determine which program to join;
Instead of staring oneself blind looking solely on the size of
commission, affiliates should always research the websites of the
affiliate programs before joining them. See if the prices are
competitive, website easy to navigate and if they have products likely
to appeal to your visitors. The key is to find an affiliate program
likely to treat your referrals well, and convert them into paying
customers.
If the products are expensive, the decision to buy a product can take
quite some time, if you are promoting such products - be sure to look
at the length of cookie. The minimum length should be no less than 30
days, otherwise you stand to loose to many of your converting visitors
when their cookies expire before they actually convert.
Another important thing is recurring commission. If the affiliate
program in question is offering recurring - or residual - commission,
roughly 5% of the buyers will return and make additional purchases.
This is of course highly dependent of niche. Referring players to a
poker affiliate program will generate recurring commission far more
often than if you are promoting car rentals or such, but this should be
taken into consideration when calculating the potential commission.
Once you have found the best pay per sale affiliate program, it's much
easier to compare it to the various PPC, PPM or PPL affiliate programs
in your niche, to see which commission model likely to make the best
revenue. An easy calculation of how many clicks, leads or impressions
you need to deliver to meet the expected value of the PPS commission
for one sale. If the amount of clicks needed are high, the PPS option
is likely your best option, if its low - you might be better off with a
pay per click affiliate program. The same applies when looking at PPM
or PPL affiliate programs.