What is “Pay Per Performance” (PPP) in Affiliate Marketing?

Pay Per Performance (PPP) affiliate marketing is the most popular among merchant and is also the most lucrative type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an action. That is whenever the visitor has referred actually buys something from the merchant’s site or when the visitor becomes a lead. This means a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 10% to 70% of the actual product sales.
PPP affiliate marketing can be further classified into two popular types: pay-per-sales (PPS) & Pay Per Lead (PPL).

(1) Pay Per Sales (PPS)
In a Per Per Sales (PPS) type of affiliate marketing, the merchants pay the affiliate a certain fee or commission whenever the visitor he has referred to the merchant’s site actually buys something from the merchant’s site. Affiliates are often paid on commission basis, although other merchants would opt to pay a fixed fee. But no matter what the basis of the fee is, it is generally higher than the fee paid to affiliates in a PPC affiliate program. PPS commission range from 10% to 70%, some merchant even offer up to 100% commission pay out per sale.

(2) Pay Per Lead (PPL)
The Pay Per Lead (PPL) type of affiliate marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who rely on leads for their company to grow. This PPL can also apply to survey company.In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant’s site fills up an application form or any similar form related to the business of the company.
Compensation for this type of affiliate marketing is based on a fixed fee whose rates approximate that of the fixed fee in the PPS type.