What is EPC?
Knowing how much you earn for each click you achieve is, of course, fundamental to calculating your affiliate marketing earnings and making your affiliate marketing campaigns work for you, because it will help you to determine how much you are going to earn, as well as which links are the most effective, and those that need more work. However, knowing the value of each individual click is often meaningless – because some clicks might earn more than others, and some none at all!
EPC is the way that commissions for pay per click affiliate schemes are calculated and determined-put simply, it tells you the value of the clicks you win within the payment structure your affiliate scheme offers.
What is EPC for?
Whilst EPC stands for earnings per click, this is actually a little misleading. EPC is a formula that works out the mean average value for the clicks you achieve, and not simply the value of anyone click on its own.
It is a cost per click formula that allows you to analyze data on multiple clicks all at once, and returns a result of your earnings per 100 clicks, and not just on one click on its own-so it should really be called “earnings per 100 clicks,” to be totally accurate!
EPC is a common form of payment structure for affiliate websites, as well as a valuable analytics tool for affiliates because it is designed to provide an insight into the success of your pay per click referrals. A click or individual action might not make you any money in and of itself-for instance, having a high bounce rate, or a lot of clicks that don’t evolve into sales or sign-ups might constitute a click, but not necessarily any earnings. Also, different types of sign-ups or purchases at varying levels can earn different amounts of commission, and so working out the average across a representative sample of your clicks is important.
An EPC example to outline the principle can be given as a set of 100 clicks that earned you a total of $80-in in this case, the EPC is $80, or $0.80 per individual click.
Using EPC allows you to see how much money you earn for every 100 clicks you achieve-averaged out across all of the 100 and taking into account both high value and low-value clicks.
Ultimately, EPC gives you a big-picture view of your promotions and marketing endeavors, so that you can see how much money each batch of clicks earns for you, and assesses the total value of your efforts.
Affiliate marketing EPC
Affiliate marketing EPC is widely used on per-click earning sites, to give you a cost-per-click formula that allows you to see your earnings at a glance across the board, without having a huge table or list of clicks to work through and add up to see your final figure.
Good affiliate schemes provide EPC information as part of their wider analytic tools for affiliates, to allow affiliates to track their success in real-time, identify and build upon highly profitable links and promotions, and establish what is not working and why.
This is particularly important for affiliates that bring in large amounts of traffic for their partners, and those that use a wide range of different links and platforms to promote them, as EPC enables quick and easy side by side comparisons that translate into real earnings as part of your full range of analytic metrics.
For instance, say you work with an affiliate scheme that offers different levels of commissions depending on the sign-up or action achieved from each click on the same link-$1 and $2 respectively for this example, to keep things easy.
It might seem that a $2 click is obviously more lucrative-but maybe not! If you can tempt three of your prospects to make the $1 sign up for everyone that makes the $2 sign up, the $1 sign-ups actually pay our more for your effort, because the payment floor is lower or easier to achieve.
Even if your affiliate scheme doesn’t provide a ready-produced EPC table for you, it is really simple to work out your EPC for any given campaign or partner, if you know how to calculate EPC yourself.
To calculate EPC for any given campaign, just do the following:
Add up the total earnings for the campaign or timeframe that you are working with, divide this by the number of clicks received, and multiply by 100-this provides you with the earnings per 100 clicks or the EPC result.
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