Cost Per Sale (CPS)

Cost Per Sale (CPS) is an outcome-based commission model where the affiliate earns a payout only when the referred user completes a sale or revenue-generating action. Unlike CPA, which typically pays on a qualifying event like a first-time deposit, CPS ties payment directly to actual revenue. In iGaming, a CPS deal might pay a percentage of the player's first deposit amount rather than a flat fee. In prop trading, CPS could mean the affiliate earns a percentage of the challenge fee the referred trader pays.

The distinction between CPS and CPA matters for operators modeling affiliate program economics. CPA pays regardless of how much the acquired user spends, creating risk when low-value users generate flat-rate payouts. CPS aligns affiliate earnings with actual revenue, which can improve program ROI. However, CPS requires transparent revenue reporting and trust between operators and affiliates, since the affiliate's payout depends on the operator accurately reporting transaction values.

CPS models are particularly effective in verticals where transaction values vary significantly. In forex, an IB earning lot-based commissions is effectively earning a CPS model: the commission is proportional to the trader's actual volume, not just their sign-up. In online casinos, CPS can mean a percentage of the player's first purchase of chips or credits, aligning affiliate incentives with high-value player acquisition.

Operators implementing CPS must define clear qualification criteria: what counts as a "sale," what is the minimum transaction value, and how refunds or chargebacks are handled. Clawback policies are essential to prevent affiliates from gaming the system with low-quality traffic that generates refundable transactions.