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An Intro to CPS Affiliate Marketing

Updated on March 15, 2015
CPS marketing can help a particular company's product or service stand out from the crowd of competitors.
CPS marketing can help a particular company's product or service stand out from the crowd of competitors. | Source

Affiliate marketing is an increasingly popular and effective means of promoting a business’s products or services. CPS marketing and CPA marketing are the two most common types of affiliate marketing. CPS marketing includes several unique challenges that other types of affiliate marketers may not have to handle.

Effective business promotion can be extremely challenging, especially since many businesses cannot afford to advertise their products and services as fully as they would like. Therefore, many companies now often form relationships with other people or programs interested in marketing their products or services for them. They then offer to pay a commission to individuals who can drive traffic to their websites that then converts to sales; the higher the dollar amount of the sales, the greater the resulting commission. This idea of having independent individuals drive traffic to a site and then paying them when that traffic converts into customers is known as CPS affiliate marketing.

The massive rise in popularity of online shopping has led to a drastic change in the way companies promote themselves, such as through CPS marketing.
The massive rise in popularity of online shopping has led to a drastic change in the way companies promote themselves, such as through CPS marketing. | Source

CPS Marketing

CPS stands for cost per sale, while affiliate marketing is simply a type of promotion in which a company rewards a third party (the affiliate) for directing individuals interested in that company's products to their website. Some business, however, find that ordinary affiliate marketing does not sufficiently impact their bottom line, so they concentrate on CPS affiliate marketing.

The theory behind CPS affiliate marketing is that having affiliates bring traffic to a website is great, but only the traffic that actually buys something is really valuable. As a CPS affiliate marketer, then, you will only paid for the individuals that actually buy something, rather than merely for how many visitors you can send to the website.

An effective CPS marketing campaign should benefit both the company and the marketer.
An effective CPS marketing campaign should benefit both the company and the marketer. | Source

CPA Marketing

This is different from CPA, or cost per action, marketing. CPA marketing is more like what businesses who use Google Adsense and similar programs do; they pay an affiliate every time an individual clicks on that affiliate's link and is directed to their site. Once the individual has been referred to the business's site, the payment is earned and your responsibilities as the affiliate are over as far as marketing is concerned.

Of course, sending a person to a website tends to be significantly easier than sending them to a website and then getting them to make a purchase. Therefore, businesses generally pay much more for CPS traffic than they do for CPA traffic; otherwise, your extra work as a CPS affiliate marketer would not be worthwhile. They are willing to spend this extra money to a CPS affiliate marketer since they know exactly what their financial return from that investment will be. Some businesses offer both CPS and CPA affiliate programs, while others offer only one or the other.

What type of affiliate marketing do you prefer?

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Qualified Traffic

If you are a CPS affiliate marketer, you have to be much more careful about how you design your advertising campaigns and other promotional activities than you would if you were a CPA affiliate marketer. For instance, you cannot simply create content that intrigues people who are casually interested and makes them want more information; you will find yourself spending a great deal of time and money on traffic that then rarely converts to sales. You have to be careful that you are primarily attracting qualified traffic.

Qualified traffic simply means that these individuals are already interested in purchasing the product you are promoting. For example, if you are a CPS affiliate marketer for a new line of baby car seats, it would be unwise to drive traffic consisting of young professional singles with no children, since these people would be unlikely to purchase the products you are promoting.

Companies will pay much more for the sales generated by CPS marketing than they will for the potentially unqualified leads generated by some other types of marketing.
Companies will pay much more for the sales generated by CPS marketing than they will for the potentially unqualified leads generated by some other types of marketing. | Source

Final Considerations

Of course, the specific product or business you are promoting makes little difference if you promote it correctly. CPS affiliate marketers can sell shoes, appliances, books, movies, technology and almost anything else. No matter what area you are an expert in and feel you can market, you can find businesses interested in setting up a CPS affiliate agreement. All you have to do is sign up with an affiliate marketing association like RevenueWire or CJ Affiliate and apply to market for the businesses you find interesting. Once the business approves you as a marketer, the association will be able to help you create links and ads to promote that business; you can then begin promoting these links -- and theoretically, earning money!

Do you have any tips for developing a successful CPS affiliate marketing campaign?

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