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Pay Per Sale vs Pay Per Lead, which is more profitable? (13)

01-09-2018 10:41 PM #1 jabong82 (Member)
Pay Per Sale vs Pay Per Lead, which is more profitable?

So I feel these days advertisers aren't really giving great payouts for the PPL model, so I was thinking about switching over to PPS (for the same offer).

Theoretically if you have the budget, shouldn't PPS offer higher EPCs?

Obviously the set-back is you need a larger budget and it may take longer to optimize, but other than that in the long-run shouldn't PPS be more profitable if you have good quality traffic?

01-09-2018 11:17 PM #2 matuloo (Legendary Moderator)

Over the years I tried all models ppl, pps and revshare. The best model in terms of profit was revshare ... but it took months and months to get it in full, as you need to wait for the rebills. This model only worked well with quality sites, because they have to retain the members. PPL and PPS ended up with pretty much the same returns.

Usually I go for PPL now, because it is easier to optimize and the profits come in instantly, so I don't risk problems with an advertiser going down or pulling their site, hence causing me lost revenue due to the canceled rebills.

PPS has some advantages too, usually there are no caps and no quality problems.

01-10-2018 02:26 AM #3 jabong82 (Member)

Hey Matuloo thanks for your response.

So aside from no caps / quality problems, there aren't really much more advantages to PPS?

It's interesting that you say that PPL vs PPS profits were the same for you.

I was always under the impression that if you have good quality traffic, PPS may earn you more.

01-10-2018 09:44 AM #4 matuloo (Legendary Moderator)

Quote Originally Posted by jabong82 View Post
Hey Matuloo thanks for your response.

So aside from no caps / quality problems, there aren't really much more advantages to PPS?

It's interesting that you say that PPL vs PPS profits were the same for you.

I was always under the impression that if you have good quality traffic, PPS may earn you more.
Yup, if you have excellent traffic, it could make more ... in this case, revshare would still be the best option, though.

You need to consider how risky each model is for the advertiser.

- with revshare, they do not risk ANYTHING, they will simply pay you a set % of what they get from the customer. No need for them to scrub or mess with the amounts, this is the most fair model.
- PPS is a calculation based on the retention rate they see on AVERAGE, so it's still some risk for them. They only pay when a customer becomes a paid member, but they still don't know how long the membership will last. They have to calculate this risk into the PPS rate, and they might resort to scrubbing at times.
- PPL is the more risky, it's easy to send fraudulent leads and the advertisers know this. That's why they watch quality the most closely. But, in case there is no cheating involved, the final result is predictable with a similar accuracy level as in case of PPS. That's why the overall profits can be pretty much the same when using PPL and PPS.

In the end, it really comes down to the quality level ... sending members area traffic to PPL isn't the best option, PPS or Revshare would do better. But with general tube/free traffic, PPL usually gives the best results - in case you manage to stay on the offer.

01-10-2018 05:02 PM #5 pierren (Member)

Quote Originally Posted by matuloo View Post
Yup, if you have excellent traffic, it could make more ... in this case, revshare would still be the best option, though.

You need to consider how risky each model is for the advertiser.

- with revshare, they do not risk ANYTHING, they will simply pay you a set % of what they get from the customer. No need for them to scrub or mess with the amounts, this is the most fair model.
- PPS is a calculation based on the retention rate they see on AVERAGE, so it's still some risk for them. They only pay when a customer becomes a paid member, but they still don't know how long the membership will last. They have to calculate this risk into the PPS rate, and they might resort to scrubbing at times.
- PPL is the more risky, it's easy to send fraudulent leads and the advertisers know this. That's why they watch quality the most closely. But, in case there is no cheating involved, the final result is predictable with a similar accuracy level as in case of PPS. That's why the overall profits can be pretty much the same when using PPL and PPS.

In the end, it really comes down to the quality level ... sending members area traffic to PPL isn't the best option, PPS or Revshare would do better. But with general tube/free traffic, PPL usually gives the best results - in case you manage to stay on the offer.

I totally agree but a lot of scrub with revshare (the time is hard for adult advertisers, you know as well ^^) actually. If I'm an advertiser, I take some conversions from some "small" publishers and add them to a publisher that sends more traffic, I earn more traffic and more conversions at the end. Classic

01-10-2018 06:24 PM #6 matuloo (Legendary Moderator)

Quote Originally Posted by pierren View Post
I totally agree but a lot of scrub with revshare (the time is hard for adult advertisers, you know as well ^^) actually. If I'm an advertiser, I take some conversions from some "small" publishers and add them to a publisher that sends more traffic, I earn more traffic and more conversions at the end. Classic
Based on my own tests, I ALWAYS got the most conversions when using revshare. Hard to say if the advertisers were scrubbing some of the revshare leads, no way for me to tell, but I always got the most sales that way and the best conversion rates. Taking conversions from small pubs and crediting them to large ones ... I don't think advertisers are doing this, the most popular way is to offer super high payouts and then shave some part of the leads

01-10-2018 09:49 PM #7 pierren (Member)

In France (very aggressive adult trials like CB30) I think the most popular way is principally to scrub rebills. Very hard to underestimated the conversion rate without losing a big affiliate, a better conversion rate can give you 6 month of traffic...

01-11-2018 01:58 PM #8 komplikovanna (Member)

Agreed with M!
It comes down to the quality of the traffic

01-29-2018 01:24 PM #9 forgamon (Member)

PPS is much more difficult for affiliates, but it's more suitable to advertisers.

PPL is easier for affiliates, but it's more risky to advertisers, Because, you as affiliate might be sending them crappy leads from some Tumblr blog on Exo RON that won't become paid members ever, and yet advertisers are paying you for those leads... and they lose money that way.

I'd say do PPL from quality tubes, and PPS from MAs if you can. This doesn't mean that PPS won't work with tubes.

01-31-2018 11:25 AM #10 chervenkov (Member)

Quote Originally Posted by forgamon View Post
PPS is much more difficult for affiliates, but it's more suitable to advertisers.

PPL is easier for affiliates, but it's more risky to advertisers, Because, you as affiliate might be sending them crappy leads from some Tumblr blog on Exo RON that won't become paid members ever, and yet advertisers are paying you for those leads... and they lose money that way.

I'd say do PPL from quality tubes, and PPS from MAs if you can. This doesn't mean that PPS won't work with tubes.
What is MAs? Sorry about the (dumb) question

02-01-2018 12:07 PM #11 matuloo (Legendary Moderator)

Quote Originally Posted by chervenkov View Post
What is MAs? Sorry about the (dumb) question
Members Area ... there are some traffic networks that sell clicks that come from the inside of members areas of dating or other sites, some are paid areas, some just require a subscription. This is generally considered the highest quality traffic, but the price also reflects that

05-15-2018 01:35 PM #12 affmycom (Member)

Not sure about the traffic quality? Send it to PPL

We have single offers and various Dating Smartlinks for your needs. For example - for Asian Adult traffic.

05-15-2018 08:04 PM #13 matuloo (Legendary Moderator)

Quote Originally Posted by affmycom View Post
Not sure about the traffic quality? Send it to PPL

We have single offers and various Dating Smartlinks for your needs. For example - for Asian Adult traffic.
How does this relate to the opening post? I understand you need to fly your sig, but please ...

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