What is cost per sale?
Cost per sale or CPS is a kind of payment methods for promoting products, services or websites on the Internet. Merchants pay their affiliates for every sale. It means when transaction made by credit card is completed. This kind of affiliate marketing reduces vulnerability to frauds by banning IP addresses with fraudulent behavior. So, CPS method is one of the most cost-effective and fraud protective.
It is possible to calculate it by dividing costs by a number of all sales. Another way is to divide the cost per click by conversion rate.
Frequently Asked Questions
How is cost per sale calculated?
Cost per sale is calculated by dividing the total cost of your campaign by the total revenue generated.
What is a good cost per sale?
The answer to this question will vary depending on the products or services being offered, the industries, and a number of other factors. In general, businesses should aim for a cost per sale that is lower than the average order value for their products or services.
