CPS is a billing mechanism that pays a percentage of the sale for every completed sales transaction. Here, money is paid for every new sale generated. It measures the actual amount of business produced by the activity. This is the latest trend in the field of marketing.
Conventional marketing is not risky, but expensive. It includes a heavy expenditure in advertisements, TV commercials and direct mail approaches. The results of these campaigns are not guaranteed; hence it becomes difficult for management to confirm the overall expense of marketing.