What Is EPC In Affiliate Marketing And Earnings per click formula?
What Is EPC In Affiliate Marketing? EPC is the average revenue you generate for each click you drive to a merchant’s site, and the more the EPC, the higher your earning potential is.
For example, if you earned an affiliate commission of $300 by driving 100 clicks to a merchant’s website, the EPC would be $300/100 = $3.00. Therefore, if you’re looking for ways to maximize your affiliate commissions, you MUST understand EPC in affiliate marketing.
EPC in affiliate marketing stands for “Earnings Per Click” and it gives you an insight into whether or not a product is worth your effort, time, and resources.
Once you learn how to use EPC to determine profitable or non-profitable affiliate campaigns, you can tune your efforts to maximize your pay-per-click income.
Without getting confused about what EPC means in affiliate marketing, I recommend you follow me until the end of this post.
If you are into affiliate marketing and haven’t yet taken EPC thoughtfully, you are losing a lot of possibilities. Calculating how much you can earn per the clicks you drive to a merchant’s website is important for your potential affiliate earnings.
Knowing the EPC would help you understand how much you will earn, which links and pages are the most effective, and which ones need some work.
Understanding the value of your EPC in affiliate marketing means knowing how much you can expect to earn. By comparing this value with other indicators, you can get a comprehensive overview of your campaigns.
What Does EPC Mean In Affiliate Marketing?
If you’re an affiliate marketer, EPC is one of the most critical metrics you need to know to determine if your affiliate campaigns are profitable or not.
It’s a tool for measuring overall performance and determining how well your traffic converts into sales for a particular offer.
With a good affiliate program, analytical tools will give you access to information about EPC. When affiliates track their performance, they can establish which aspects are not working out and why.
This is a significant advantage, especially for those who use a wide range of platforms to promote links.
Affiliate marketing networks often display EPC to help their affiliates evaluate and compare their earnings potential to other merchants.
Whether you are running an affiliate program or sharing affiliate links from affiliate partners, EPC is one of the essential metrics to be successful in your campaigns.
Why EPC Is Important In Affiliate Marketing
Most affiliate marketers aren’t aware of the EPC marketing metric and how the EPC calculation is done. Most marketers are more familiar with the CPC (Cost Per Click) than EPC.
Therefore, they look for products with the lowest CPC and run expensive pay-per-click ads (PPC) to that affiliate link, hoping the ads can make enough money to cover the costs.
Now, the thing is, they may make a small profit this way. But if you know how to calculate EPC accurately, you don’t need to rely on hope.
Like any other marketing effort, making decisions based on data and insights helps you make incredible improvements in your marketing campaigns.
You can see predictable success once you know your EPC and target other affiliate products with higher EPC.
Although EPC stands for earnings per click, this can be misleading. EPC formula shows you the value for the clicks you obtain, not just the value of one click on its own.
EPC is a valuable analytics metric for affiliates and a standard payment structure for affiliate websites.
As marketers, you can agree with me that not all of your visitors clicking through an affiliate link placed on your website would end up buying something or providing their email for signup.
And, even the majority of the clicks would NOT evolve into signups or sales. In addition to that, different kinds of purchases or registrations can result in different amounts of affiliate commissions.
Still, if you can work the average earning per click, you will know where you are going with your campaign. And the best way to beat that is to know how to calculate EPC in affiliate marketing.
Earnings Per Click Affiliate Formula
EPC is an acronym for “Earnings Per Clicks.” In summary, it means how much money you earn every time a customer clicks on your affiliate link.
Some believe that EPC is one of the most important metrics for measuring the success of affiliate marketing.
Approximating it with CPC provides valuable insights that you should analyze often. For better understanding, your profit in affiliate marketing is based on this equation: profit = EPC – CPC.
Don’t be confused. By the end of this post, you’ll learn more about what EPC means in affiliate marketing and how you can use it to scale your affiliate commissions.
How To Calculate EPC In Affiliate Marketing
It’s straightforward to calculate for EPC (Earnings Per Click). Here’s the formula for EPC: The total amount of commissions you earn / the number of clicks you obtained with your affiliate links = EPC.
For example, let’s say you were running Facebook ads for an affiliate product, and you got $100 commissions. And all of your revenue came from 50 clicks on your affiliate link. In this case, to calculate the EPC:
$100 (Total commissions) divided by 50 (Total clicks) = $2 (EPC)
NB: Most affiliate networks provide details about EPC in the campaign details for their affiliate marketer.
You may see this piece of data called “network EPC” because it comes from the affiliate program’s partner to provide an average.
Now, It’s Your Turn
Running an affiliate business involves spending money, time, and effort looking for and comparing affiliate offers. Therefore, you need to find out where you need to spend your money and time.
Getting lost in metrics and numbers is relatively easy, and if you are not analyzing the correct data, you are probably losing your money.
Focusing on EPC in affiliate marketing might seem a quick fix, but it’s a proven effective way to ensure that you are not squandering away your money.
By far, this post has helped you to understand what EPC means in affiliate marketing. Do you have any further questions? Post it in the comment section, and I will surely get back to you.