Cost Per Sale (CPS)

What is "cost per sale?" Commonly referred to as "CPS," cost per sale is a direct marketing term whereby the advertiser pays primarily for user click throughs that lead to an actual sale on the advertiser's site. In general, cost per sale is measured by the average advertising cost per online sale. Similar to cost per action, cost per sale is defined as what an advertiser pays for each visitor who carries out a particular action in response to an ad; often referred to as a conversion.

An unconventional method of advertising, cost per sale strategy offers relatively low risk to advertisers as this form of marketing usually stays within budget. Sales generated by cps can be a successful means of revenue without having to pay upfront costs. Some pros to cost per sale ad campaigns include:

• Cost effective sales generation


• Higher visibility to attract more prospects.


• Generation of sales in areas not covered by sales staff.


• Enabling informed market research data.

Overall, sites that sell products and/or services directly from advertiser websites can generate effortless sales by way of cost per sale marketing campaigns.

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