PPL, PPS, and RevShare explored

Your campaign success hinges on a few variables, like what kind of creatives to use, where to place them, and whether to use pre-landers or not. Without a doubt, all these considerations are equally important to ensure your advertising machine runs at full steam, but you also need a way to put all this power to good use — you need a chassis.

This is where the decision for a payment model comes into play. Choosing the correct payment model could make or break you. Pick incorrectly, and your efforts could be wiped away within a blink of an eye; so wise up.

Because of this, we want to discuss payout models, especially in terms of what A.W. Empire offers. Our job is to maximize your profit by explaining when to use PPL, PPS, and RevShare. Furthermore, we’ll highlight some combined approaches, be it a hybrid model or a mixed use of various models.

And even though we’ll refer to A.W. Empire quite often, all the information in this article applies to other affiliate programs as well. Without further ado, let’s figure out your best payout model!

Pay Per Lead (PPL): The fast track to earnings

The first model we will be looking at today is Pay Per Lead (PPL). As the name suggests, you get a commission every time a user registers and inputs some data; common examples of such registration would be Single or Double Opt-In (SOI or DOI).

PPL is the least complex payout model of all mentioned here, which makes it easier to convert the users, but there are some downsides to it. For example, you won’t be paid much for PPL, because of its simple nature.

Don’t confuse simplicity with inferiority; it all depends on the traffic quality. Keep in mind that should an affiliate fail to deliver converting users, their rate might go down, or they might be asked to pause their source. On the flip side, if you have good traffic that converts, you might be asked to increase the volume. Another thing to remember is that some advertisers impose extra conditions after SOI or DOI registration for the conversion to fire.

PPL is a solid choice for beginners in performance marketing. It also works best when exploring new niches, GEOs, or other funnel settings. Long story short, PPL and split-testing go hand-in-hand. 

Pay Per Sale (PPS): Big wins with purchasing users

With Pay Per Sale (PPS) you will earn the commission based on the user’s purchasing. Compared to the PPL, you will be paid higher (up to $300 on A.W. Empire), but this model has its downsides too.

When it comes to marketing funnels, PPS converts on a deeper layer, meaning you’ll have to put more effort into convincing the user to take a target action. Fewer users will agree, compared to PPL, but, on the bright side, it filters out poor-quality traffic before it messes with the stats and reaps a higher yield if successful.

Another thing to remember is that $300 is the maximum payout on A.W. Empire. The network analyzes the LTV of a user to see if PPS is beneficial in the long run for both sides. Don’t be discouraged if you don’t get the maximum rate at the beginning — either improve your traffic quality or increase volume to balance things off.

Ultimately, PPS is the king of fixed rates, when you want to get paid big, in a single swoop, and quickly. However, big doesn’t mean the biggest, and if you want to maximize your income, go for RevShare…

RevShare: Get them on the comeback

The last payout model for today is RevShare. It’s a dynamic payout model, meaning your income is based on the user’s spending. RevShare works well when promoting subscriptions, recurring memberships, or something super-engaging, e.g., gambling or games (both mainstream and non-mainstream😉).

Basically, a user renews their subscription every month, and you generate an income based on their Lifetime Value (LTV). Keep in mind that with this model you won’t make a fortune overnight, but in the long run, you can make a lot of money in a passive mode, provided your traffic is of high quality.

Beware, RevShare income can be affected by chargebacks, i.e., when the users request their funds back via a payment provider. That’s why you should refrain from deceptive marketing and promise exactly what you can deliver. Not all the payment providers have the chargeback option available, but that’s somewhat random, so we’d rather not hope for it too much.

Now that we know what these models are, we will tell you which strategy is better to use to maximize your income.

The choice of the strategy

Neither model is superior, as they all can be useful. It is ideal to diversify your total traffic between different payout models for the sake of stability. 

With PPL, you can go beyond Tier 1 and take a look at T2 and T3 GEOs, i.e., go broad. As we have said earlier, PPL is great not only for beginners in affiliate marketing, but also for trying out new settings, creatives, and so on with multiple traffic sources. Even if you are a seasoned affiliate and think that you know the market, we still encourage you to do a little testing, as you might encounter some unexpected gold vein of a funnel.

Once the tests are over, and you realize what works, it’s time to switch to PPS. When it comes to fixed payout models, this one maximizes your income. PPS is also less complicated in terms of accounting compared to RevShare, which helps to plan out campaign cash flow in advance, and this is especially important for large teams, launching campaigns together. This model also provides the required financial support when tapping into RevShare.

Speaking of which, RevShare is your iron pick if you are promoting a product with frequent recurring purchases or monthly subscriptions. It makes the most out of your leads, so you can generate income long after converting a user. But it’s a great idea to have a side source of income either from PPL or PPS to ensure you won’t run out of budget midway.

Whichever model you pick, make sure to consult your account manager beforehand to secure the latest insights. 

Finally, if you are scared of hopping onto RevShare but feel dissatisfied with PPS, we’ve got a solution for you.

Switching between models made easier

We know that switching from one model to another during the campaign can be intimidating, especially for newcomers. And we recommend trying out hybrid solutions, like Pay Per Lead & RevShare (PPLR) from A.W. Empire. With this payout model, you get the best of both worlds: you will be paid a fixed commission for every new registration made by a user, and you will continue to earn money for every subsequent purchase they make. It’s an ideal combination for when you feel like the direct transition to RevShare might be too abrupt.

Hopefully, this article will help you out on your journey towards profit. Drop us a line if you need any assistance, read our blog articles, and subscribe to our weekly newsletter, where we share the most relevant news, updates, and insights about the industry.