commission mechanics
Cost Per Sale (CPS)
A commission paid as a percentage of the sale value — the dominant model in ecommerce programs.
What is Cost Per Sale (CPS)?
Cost per sale (CPS) is an affiliate commission structure in which the affiliate earns a percentage of the total purchase amount for every sale made by a referred customer — the most prevalent model in retail, ecommerce, and physical goods affiliate programs.
Cost Per Sale (CPS) In Practice
CPS is effectively a percentage-based revenue share on individual transactions. The affiliate earns nothing if the referred visitor does not purchase, and earns more when the customer buys higher-value items — creating a natural incentive to attract research-driven buyers who purchase deliberately. CPS rates by vertical: retail and ecommerce typically 4%–12%; luxury goods 5%–15%; digital products and software 20%–50% due to near-zero marginal fulfilment cost. The compound metric for CPS programs is EPC: conversion rate multiplied by average order value multiplied by commission rate. An 8% CPS program with a 2.5% conversion rate on a $95 AOV produces EPC of $8% x 2.5% x $95 = $0.19. CPS differs from flat-bounty CPA in one significant way: a referred customer who buys a $1,200 item earns substantially more commission than one buying a $30 item, making CPS programs especially rewarding for affiliates whose audiences make high-value purchases.
Example of Cost Per Sale (CPS)
An affiliate promotes a furniture program paying 7% CPS. Their review content attracts deliberate buyers with an average referred order value of $340 — above the store's baseline $220 AOV because review readers research before purchasing. Commission per referred sale: $340 x 7% = $23.80. EPC at 2.4% conversion: $0.57. A competing program offering a flat $15 bounty with the same conversion rate produces EPC of $0.36 — 37% less. The CPS program outperforms the flat bounty specifically because the affiliate's audience spends above the store average.