What is Pay Per Sale

There are four basic actions in which affiliates are paid when they send their visitors to a merchant's website.
1. The visitor buys something from the advertiser (pay per sale).
2. The visitor completes a lead form (pay per lead).
3. The visitor downloads, installs, or uses some product or service (pay per action).
4. The visitor clicks on a link and visits the merchant's website (pay per click).

Below are detailed explanations of each action:

Pay Per Sale:
Pay per sale is the most common type of affiliate program on the web. With pay per sale you refer visitors to a merchant that sells products or services. You earn a commission when that visitor buys something from the merchant. In most cases you earn a percentage of the sale, but in some instances you may be given a flat dollar amount.
Most merchants that sell products online pay their affiliates a percentage of sales. Merchants that fall into this category include, Home Depot, REI, Dell Computers, and most big e-tailers on the Internet.
Most of the merchants that pay their affiliates a flat dollar amount sell services.
Merchants who sell web hosting, online dating, and other online services tend to compensate their affiliates with a flat dollar amount, rather than a percentage of the sale.

Advantages of Earning a Percentage of Sales
• You can earn a ton of cash on big ticket items.
(Example: You refer a customer who buys a $2,500 computer).
• You can earn a ton of cash when your visitors buy multiple items at once.
(Example: You refer a customer who buys a pair of shoes, matching purse and jacket).
• Some merchants will pay their affiliates commissions on repeat purchases.

Disadvantages of Earning a Percentage of Sales
• Your visitor may buy a small ticket item.
(Example: The customer you referred buys a pair of socks, and never returns to purchase anything else).
• Your visitor may return the merchandise, which could result in your commission being reversed.
(Example: The shirt your visitor bought last week just doesn't fit right. They return it, and your commission is reversed).