CPM/PPC to PPS (rev-share) calculator
Definitions
Monthly subscription cost:Enter the value that the brand you're promoting charges per month. They may have a range of prices and discounts which can make this value variable. Enter the base package per month and use the subscription duration to factor in 3, 6 and 12 month packages.
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.
Initial commission:
Enter the percentage of the initial sale you're paid. Some programs have a flat commission rate, others pay different values
for initial payments vs re-bills.
Re-bill commission:
Enter the percentage of the re-bill sales you're paid.
Is your PPS (revenue share) affiliate offer any good?
Revenue share models are designs for long standing affiliate partnerships. If you plan to build a business around an affiliate program then revenue share could be the right choice. Another advantage over other models is they often pay for any type of traffic, therefore they don't have traffic terms like PPS (Fixed) or PPL offers. However, the initial earnings will be lower and only after 6 months will you have a good understanding of the returns.You need to pick brands and offers that you feel are professional and are focused on continued growth. Additionally, you need to consider landing page and email delivery which have been discussed on other calculators.
Example calculations
Offer #1: $30.00 monthly cost
Free sign up conversion rate = 20%
Free to paid conversion rate = 2%
Initial commission = 50%
Re-bill commission = 50%
Subscription duration = 5
Earnings per click = $0.30
Offer #2: $30.00 monthly cost
Free sign up conversion rate = 20%
Free to paid conversion rate = 2%
Initial commission = 75%
Re-bill commission = 50%
Subscription duration = 5
Earnings per click = $0.33
In the examples, all values are the same other than the commission splits. Offer 2 generates 10% additional revenue.
