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Traditional pay per click (also known as RPC, or rate per click) advertising involves paying a flat rate per each click. This rate can change depending on, in AdWords for example, the amount of other merchants competing for the same keywords and how much they’re willing to pay.

What’s the new, better way of doing pay per click?

Why does PPC work the way it does?

Traditional PPC is intended to make money for third-party advertising hosts like Google. Any benefits it may have for site owners and merchants, though necessary for Google to make money, are secondary.

As a result, merchants stand to lose a lot of money if they run a PPC campaign with a high click-through rate but a low conversion rate. That’s why so many of them favor PPL and PPA (pay-per-action, or pay-per-sale) on websites but are forced to use PPC for Google searches. Advertisers, or site owners, can lose money if there are not many clicks even if almost every click converts to a lead or a sale.

Performance Based RPC

Performance based RPC is a new method whereby the rate paid for each click depends on how well the publisher is doing. This means you get paid more money if ads on your sites convert to leads or sales, but you aren’t out in the cold if they have a low conversion rate like you are in traditional PPL and PPA campaigns

INTENTclick is an in-text monetization company that has recently began using performance based RPC. INTENTclick’s unique formula involves paying you depending on your site’s traffic performance. According to INTENclick’s Performance based RPC page, how much they pay you is based on many variables, such as lead generation, sales revenue, and how long the customers that you recruit stick with INTENTclick.

Disclaimer: My company Influence People does blog relations for INTENTclick.