What is Pay Per Action (PPA)?

Commission model where affiliates are paid for a specific action (e.g., sign-up, download). This performance-based approach ensures merchants only pay when desired outcomes occur. Actions can include form submissions, account creations, app installations, or email subscriptions. PPA models align affiliate incentives with merchant goals by focusing on quality over quantity of traffic. Unlike pay-per-click, PPA minimizes risk of fraud and wasted ad spend since compensation depends on valuable user engagement. This model is particularly popular in financial services, subscription businesses, and mobile app marketing where specific user actions directly contribute to business objectives.