What do RevShare or PPS mean?

Dollars

In this tutorial I’ll give you a rough overview of the compensation means available from most affiliate programs. This is basic information and if you’re an experienced affiliate you will probably want to skip reading this post.

Dollars

Common schemes

Pay per Sale (PPS)

This is a very simple scheme: You sell a product, you get paid a one time fee. This one time fee usually is either a percentage of the price of the item or a fixed amount of money. If – for example – we have a look at 21sextury Cash you can get a PPS fee of $40 if you send a customer who then signs up and pays for access to one of their sites. Note that it doesn’t make a difference if the customer keeps his account for one month or if he keeps his account for several months, paying the monthly fee several times.

Pay per Sale” is also the most common scheme you’ll find in non-porn affiliate programs.

Revenue Share (RevShare)

In this scenario you’ll get a fixed percentage of each payment. In the case of 21sextury Cash that means up to 70%, but usually it’s something like 50%. So if a customer signs up to one of their site, you’ll get 50% of the monthly fee of $30, i.e. you get $15. Note how that’s much lower than the value for PPS you can get?

This is where we come to retention. Some affiliate programs are good at it, others are are not. You can refer to retention as happiness of the customer with the members area of the site he signed up to. If he’s happy, he’ll keep his account for a second month, then a third, … – and you always get your 50%. 21sextury lowers it’s fee over time to keep their customers happy, so you’ll get $12 for the second month. Now you’re at a total of $27. Still less than PPS. Third month will bring you $10 and each following month means another five bucks.

Not so common…

Pay per Lead

Pay per Lead is very similar to Pay per sale. The difference is that you’re paid for an first time action of a customer which is not necessarily a sale. For example you could send someone to a gambling site and you’ll get paid if he signs up for a new account.

You’ll rarely find pay per lead on porn sites, but it is very common for non-porn programs.

Pay per Click

In Pay per Click programs you get paid a few cents for every user you send to a site through your affiliate link – regardless of a purchase. The best known affiliate program working with this scheme is Google Adsense, but it is very rare otherwise.

Pay per View

There’s agood chance you’ll never see PPV in real life as it is not used in affiliate marketing. In PPV scenarios the affiliate is paid every time he displays a banner on his website. The amount of money is usually specified as CPM (Cost per mille, i.e. amount of money for 1000 views).

Pros and Cons

There is no definitive answer which compensation you should go for. It usually depends on the lots of factors. How many users do you have? Do you have “valuable” users or are they “freeloaders”. How good is the members area of the affiliate program you’re promoting?

As mentioned above you’ll rarely see Pay per View or Pay per Click in the wild. On the other side you’ll need a lot of visitors to earn enough money with that scheme anyway. Let’s say you get a (already quite good) CPM of $1 for an PPV affiliate program. You have 500 visitors on your site every day. You’ll get $15 on the end of the month. Compare that to the $40 you can get from just one user in the PPS example.

But as I said – there is no answer to the question if you should go with PPS and RevShare (the two options you’ll often have): You’ll have to try for yourself.