Pay-Per-Sale Leads Explained: The Ultimate ROI

Kasra Dash: So pay per sale leads. I’m joined with James. What is pay per sale leads.

James Dooley: Pay per sale leads is where you only pay when you’ve actually made the sale. You’re not paying on a pay per lead model and you’re not covering any of the advertising or marketing spend. You only pay on a sale. You work out a cost per acquisition model and decide that if you sell a product and make X profit you’re willing to pay a percentage of that profit as a revenue share. You only pay on the sales.

Kasra Dash: So let’s say I’m selling a phone case and it’s £1 and I get 80p profit and 20p cost. What percentage would you be getting at that point.

James Dooley: It completely depends because one of the first questions people ask is how much commission they need to pay on a pay per sale model. If we can generate leads at £5 each and they convert at 20 percent the cost per sale is £25. If we make £30 or £35 on that sale we’re still making profit so we’d accept it. If the business only wanted to pay £20 per sale but it cost us £25 because the conversion is one in five it wouldn’t work. We need to work out the numbers first to see if it makes sense for both parties. If it works we build the relationship and generate the leads and they only pay per sale.

Kasra Dash: So on a bigger scale like conservatories you can do pay per sale too.

James Dooley: Yes. If a conservatory is £10,000 and the company makes £4,000 they might pay £1,000 per sale. If our cost per sale is £700 and they’re happy to pay £1,000 then it works for them and for us. As long as they work the leads properly and hit the conversion rate we need the relationship scales. There is no risk for the conservatory company because they make £4,000 and pay £1,000 and keep £3,000 profit. If you know your numbers and we know ours the pay per sale model can be the best setup available.

Kasra Dash: So pay per sale isn’t just for products. It can be for services like solar panels too.

James Dooley: Yes it works for e-commerce, products and services. If a roofer charges £5,000 for repairs and makes £4,000 profit they might pay £2,000 per sale and that might still be profitable for us because we might only generate it for £400 on a cost per acquisition. When both parties profit it scales fast. It works for locksmiths, roofers, any service where volume matters. Most lead generation companies won’t do pay per sale because they prefer pay per lead or charging for PPC plus a management fee whether it converts or not. Business owners don’t like the risk. A good lead generator removes that risk and only earns when the business earns.

Kasra Dash: If someone wants a pay per sale setup where should they go.

James Dooley: Head over to fatrank.com and fill in the contact form. There is a criteria because we must make sure the business can work the leads and that the profitability works for both sides. We guarantee return on investment because you only pay from profits on a revenue share basis. Commission-based and pay per sale lead generation is the best model in my opinion. Try to team up with one or two others if you can but there aren’t many that offer true pay per sale. Fatrank.com is the place to start.