Category: Affiliate marketing guides
Earnings per click or EPC is one of the most important metrics in affiliate marketing. Learning how to increase EPC can help any affiliate thrive. However, even before you start to work on improving it, it is important to learn everything there is to know about this metric. Affie.com is here to show you how to calculate EPC.
EPC refers to the average amount of money an affiliate makes when someone clicks their affiliate links. It is most often connected to pay per click, or PPC ads and shows every affiliate the potential they have to earn money. This is true because it pinpoints exactly how much you will earn for every visitor you turn into a customer.
Many affiliates rely on products with a very low cost per click (CPC for short) to make a profit. This is a common newbie mistake. In contrast, knowing your EPC can eliminate any uncertainty, and luck won’t be a factor in your business.
Knowing how much you make from every visitor click can help you make informed and data-driven decisions, and also predict your profit. Luck is great, but certainty is better for business.
To know your EPC in a campaign you will need to divide your earnings by the number of clicks you have sent that company’s way:
Let’s say, for example, you receive 50$ after sending 500 clicks a company’s way, your EPC is 10 cents per click.
There really isn’t a universal answer to this question. This is true because EPC doesn’t only depend upon the money you make, but also the money you invest in a campaign. That is to say, your cost per click plays a major part in your earnings. It is also important to consider your own position and experience within the business. For an affiliate only getting started with their first campaigns, it is important to stay afloat, because they are still learning the tricks of the trade.
There is only one general rule, and it reads as follows. If your earnings per click are higher than your cost per click – you are making money.
It takes time to learn everything there is to know about affiliate marketing. Especially since the market is ever-evolving and expanding. Take your time to learn all about banners that will convert, creating irresistible landing pages, reducing site abandonment, and other important factors in the business. Then and only then you will see your EPC rise steadily.
As we have previously mentioned, the affiliate world is dynamic. The same can be said about EPC. Some fluctuation is normal, but using the right platform to track your progress is key to staying alert about any bigger changes. An EPC getting drastically lower all of a sudden can be a warning sign. Namely, merchants are also looking to make as much money as possible from their affiliate programs. That, in turn, means some of them will try to find new ways to move the goalposts and pay their affiliates less.
It is important to find merchants who are transparent about EPC and any changes they make to their business model. Unfortunately, many avoid doing exactly that. Thus, you should also pay attention to what is being said on different forums. Many experienced affiliates will offer you helpful advice or information about changing merchants or getting a more favorable contract.
To put it differently: If you are generating a lot of leads for a merchant, and not being paid enough, it is normal to lose interest. After all, they are making money and you are not. Ask around and find out if other merchants are paying their affiliates much more for the same amount of clicks. You should collect all this information and talk to your merchant or a representative. This way you can either ensure a better EPC or find a better merchant to collaborate with.