CPS (cost per sale) is a commission model in which the affiliate is paid only when a referred visitor completes a purchase. The commission is usually a percentage of the order value, though some programs pay a fixed amount per sale. CPS is the most common model in e-commerce affiliate programs because the advertiser pays only out of revenue it has already earned.
How it works
The affiliate's tracking link records the click. If the customer checks out within the cookie duration, the order value is reported by pixel or postback. The program then typically waits out its return or refund period before approving the commission, so canceled or returned orders can be reversed. Whether the percentage applies to the gross order or to net value (excluding tax, shipping, and discounts) depends on the program terms.
Example
Example: a store pays 8% CPS on net order value.
Order total: $120.00
Less tax and shipping: -$20.00
Net order value: $100.00
Commission (8%): $8.00
If the customer returns the item within the refund window, the $8.00 commission is reversed.
Why it matters
For brands, CPS is low-risk: cost scales directly with revenue, and you never pay for traffic that doesn't buy. Percentage-based CPS also rewards affiliates who drive larger baskets. For affiliates, CPS means accepting conversion risk, since you are paid only if the brand's site, pricing, and checkout convert, so compare conversion rate and average order value, not just the commission percentage. CPS also differs from RevShare, which pays a share of a customer's ongoing revenue over time rather than a one-off commission per order.
Related: CPA, RevShare, last-click attribution, cookie duration.