CPM/PPC to PPS (fixed price) calculator
Definitions
Earnings per sale:Enter the value that the affiliate program will pay you per sale.
CPM click rate:
Enter the click rate of the display advert program you expect. This will be a low percentage, for example, 0.5% to 2%.
Ask your advert network for some typical examples. This will vary on the media you use for your banners and the placement
on the target site.
Free sign up conversion rate:
Enter the percentage sign up rate from visitor to free join. This will vary on the landing page quality and the quality of the incoming traffic.
Free to paid conversion rate:
Enter the percentage of free sign ups you expect to convert to paid.
This will vary considerably based on the sites quality, sales processes, payment system and many more factors.
Is your PPS (fixed price) affiliate offer any good?
This is determined by 2 factors of the sales funnel. How may visitors join for free and how many then go on to be paid customers. The affiliate programs often offer you more than they earn for the base sale. For example, if they have a subscription product that costs 25.00 they may pay you 35.00 and aim to make the money back in future renewals.To compare offers you need to look at everything the program provides. See our advice on landing page quality and email delivery rates.
SKIMMER WARNING!
Fixed price affiliate programs are one of the easiest for your program provider to cheat you out of earnings. In competitive sectors such as gambling and dating there are some very unethical practices performed. As you would have to pay to see if they are cheating it's easy to skim some of the sales by taking the entire sale or by saying the customer filed a refund or charge back. Charge backs are usually for the maximum package value as someone with a stolen credit card will go for the highest cost. If your program has a lot of charge backs for the lower entry packages be on your guard. However, if your program doesn't have any charge backs then something isn't right! Between 5% to 10% of total sales value could be genuine refunds and charge backs. If they pay you $50.00 for a sale, but have a $40.00 refund plus a $20.00 charge back fee they loose $70.00. It's possible they will recover that money from your sales some other way.In your sector, if most programs offer $50.00 per sale and someone else offers $150.00 they could be skimming. You can confirm this if the earnings per click work out to be the same as they should be x3!
Example calculations
Offer #1: $150.00 PPSVery high payment per lead but you suspect they are skimmers and their landing page is not ideal.
Free sign up conversion rate = 15%
Free to paid conversion rate = 1%
Earnings per click = $0.23
Offer #1: $50.00 PPS
Lower offer value per lead, genuine site with good landers
Free sign up conversion rate = 25%
Free to paid conversion rate = 1.8%
Earnings per click = $0.23
In the above example offer 1 pays the same as offer 2. Offer 1 may have a poorer design and weaker backend processes, or they could be pulling a fast one. In the same sector most brands should have similar conversion rates throughout the sales funnel. It's rare for one company to devise a sales process that is x3 times more effective.
