Do you like paying for leads you don’t close?


Pay Per Click (PPC) vs. Pay Per Sale (PPS)

Does paying for PPC ads feel like throwing money out the window? The concept sounds great until you realize:

___1. You don’t pay per “click”. You pay per “impression”.

___2. Clicks don’t always sign up so you don’t get their contact info.

___3. When you do get a lead it is not qualified and has minimal information.

There’s a better concept. It’s called “Pay Per Sale”. You don’t pay anything until you close the sale. Now doesn’t that sound better?

Don’t get me wrong. There’ a place for PPC ads. We used them for years and made money. But the cost is enormous and you have to experiment a lot to find out what works. By then you are in for thousands of dollars and the game has just begun.
There are inherent problems in the PPC model that PPS conquers readily (and inexpensively). With PPS ads:

Leads are qualified

Click to See a Sample Referral Email

The PPC model counts on a customer having the wherewithal to research and find the best software. That’s not realistic. An average customer will read reviews, go to PPC sites and clickthrough to several landing pages and perhaps fill out the “free trial” form there. When you receive that signup and call the prospect the odds of talking to a qualified lead are very low.

Cleerly employs the PPS model. Prospects are encouraged to fill out a form with details about their needs and receive expert recommendations from us. Those highly qualified and detailed leads (see our Sample Referral Email for details) are sent directly to you. You can see how we collect that information in our post – Information we collect from prospects.

Every lead is a fit, and you still have not paid a dime.


You pay when you sell

PPC ads charge you every time your ad is displayed (known as an “impression”) regardless of whether the prospect clicks or even looks at your link. If your PPC cost is $5 and you have an industry standard Click-through Rate (CTR) of 2% then each click costs $250.

PPC Rate $5
# of Impressions 1000
Click-throughs per 1000 @ 2% 20
Cost per Lead $250

Let’s take that one step further. If your close rate is 2% that means you close 1 sale for every 50 leads you receive. Those 50 leads cost you a whopping $12,500!

Close Rate 2.00%
CTR to achieve 1 Sale 50
Cost per Sale $12,500

Your mileage may vary, especially the PPC rate, but the percentages are standard and they assume your ads are working efficiently (which they won’t be at first). Plus, you are paying all the money in advance before you even make a sale.


How Much Can You Save with PPS?

In the above example, if your product was an expensive software solution, let’s say a $50k ERP, the costs are justifiable for PPC. But let’s compare that to a PPS model where you pay a 20% commission.

Ad Type Sale Price Cost of Ad
PPC $50,000 $12,500
PPS $50,000 $10,000
PPS Savings $2,500

In the PPS model you do not pay until you close the sale. Commissions are typically paid through your existing referral/reseller programs, but any arrangements can be made for compensation. You don’t pay until after you close the sale and you pay less than PPC rates.

It’s that simple and it’s the way we think advertising should work.

– ♦ –

Partner with Cleerly: Start receiving qualified ads without paying a dime until you close the sale. It’s easy, just click the link below and fill out the short form. We will do the rest.

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Cleerly Admin

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