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What Is EPC In Affiliate Marketing?

    what is epc in affiliate marketing

    What does EPC have in common with affiliate marketing? A lot!

    EPC is not just another metric you need to follow. it’s inherently linked to your turnover. Knowing the price of your EPC means knowing what proportion you’ll expect to earn.

    By comparing this value with other indicators, you will get a comprehensive overview of your campaigns. Let’s dive in and know what is EPC in affiliate marketing

     

    What does EPC mean?

    EPC is an acronym for earnings per click. In practice, it means what proportion of money you earn whenever a customer clicks on your affiliate link.

     

    Some say that EPC is one of the foremost crucial metrics for measuring the success of affiliate marketing. Comparing it with CPC provides you with useful insights that need to be analyzed often. Your profits are determined by the equation: profit = EPC – CPC.

     

    We’ll show you ways to use EPC in practice afterward, and describe what EPC is in affiliate marketing.

    What does EPC in affiliate marketing mean?

    EPC in affiliate marketing could also be a well-liked metric to use, especially on per click earning sites. in conjunction with CPC, it allows you to determine how a selected site is doing. With an honest affiliate program, analytical tools will provide you with access to information about EPC.

     

    When affiliates track their performance, they’re going to establish which aspects aren’t understanding, and why. this is often an enormous advantage, especially for people who use an honest range of platforms to plug links.

     

    Have you ever asked the question, “Why do I would like EPC?” EPC calculates the standard value per 100 clicks. it is a formula that allows you to research multiple clicks directly. it is also a popular payment method for affiliate marketing.

     

    EPC is additionally an important metric for analytics. Many clicks plus a high bounce rate don’t equate to high earnings. Moreover, there could even be a situation where different kinds of registration bring mixed earnings.

     

    With EPC, however, you will have a holistic view of how your business works and therefore the way much you’re earning.

     

    If you’re wondering why the price of EPC should be bigger than CPC, the rationale is very simple. If your EPC is above your CPC, you will be earning money. this is often the essential principle of economics.

     

    Of course, if you keep costs, and thus CPC, as low as possible, then your earnings will increase. Conversely, with reasonably high earnings (per click), you’ll afford to increase your CPC expenditure and expand your business whilst remaining in profit.

     

    However, if you’re not monitoring your EPC, such actions are somewhat risky and will end in losses. This shows the essence of the indicator and explains what EPC in affiliate marketing really means.

    EPC in affiliate marketing
    How to interpret EPC

    To understand what EPC in affiliate marketing is, you’d wish to understand the thanks to calculating its value and interpret the numbers you compute. we’ll assist you thereupon by providing a simple example.

     

    Let’s imagine a situation where there was entire of 500 clicks, and thus the worth of the merchandise was $200.

     

    Internet number of sales after refunds was 20, and thus the affiliate commission per ale was $10. To calculate EPC, you’d wish to require net commissions earned and divide it by the whole number of clicks.

    EPC= (20$10)500=$0.40

    In our example above, EPC was found out to be $0.40. So, supported this, one would expect to earn a mean of $0.40 for every click on one of the affiliate links.

    For 1,000 clicks one would receive $400 worth of commissions, etc. This shows what EPC in affiliate marketing is in practice.

    The most crucial aspect of EPC is that it reflects a product’s ability to convert clicks into conversions. There aren’t any specific benchmarks that indicate whether a selected EPC is “good” or “bad”.

    It all depends on the industry, product, the time at which the price is taken under consideration. the general rule, of course, is that the upper the EPC, the upper. you’ll still gain plenty of valuable info by knowing its value.

    There could even be a situation where you have a high conversion rate, yet EPC isn’t comparatively high. this might be a red flag for indicating a bottleneck that has got to be eliminated.

    By monitoring the price of EPC, you’ll remember such potential issues. However, if you focused on conversions only, the problems won’t be detected directly.

     

    How to improve your EPC

    You don’t need to create a long-term strategy to increase your earnings per click. What you need to do is follow some simple tips, which are listed below.

    Identify the absolute best-paying merchants. It sounds obvious, but it’s not very easy in practice. you need to establish which merchants pay the foremost and do your best to achieve both them and their audience.

    Good research never hurt anybody. it’s documented that EPCs aren’t standardized, which suggests that different merchants offer different payments.

    Find the foremost profitable site. The key here is to understand that different kinds of internet sites will generate different amounts of EPCs, but also CPCs. it’s entirely understandable. Do the research and choose on which site you need to be present.

    Choose fast hosting. Something that’s quite simple to understand is that if people don’t stay on your website, then they won’t click on your affiliate link.

     

    Fast hosting can keep visitors on your website longer. Do some research and choose a provider which can suit you best.

    Keep yourself up thus far – be seasonal. When it’s Christmas time link to some good gift inspirations, and when it is the summer season link to some holiday essentials. due to this sort of labor organization, you’ll increase your web traffic and EPC quickly, thus improving the performance of your business.

    Put affiliate links in blog or vlog descriptions. This way, your audience might click on an affiliate link (almost) automatically. which suggests higher EPC.

    Track important metrics. By important, we mean EPC, CPC, PPC ads, A/B test results, email campaigns, and affiliate landing pages.

    EPC and CPC provide you with valuable insights into your affiliate performance and help adjust your strategy. the other metrics can assist you to master your content.

    You’ll make some modifications to the methods of communication alongside your audience relying on the results. In a perfect world, such changes will boost your EPC and reduce your CPC.

    For Summarize

    Now you need to know what EPC in affiliate marketing is. As we’ve said during this text, EPC may be a crucial metric to observe.

    getting to know the price and therefore the way it’s calculated makes it easy to work on your strategy and affect any problems.

    As always, analyzing only one metric on just one occasion doesn’t make much sense. you need to inspect your performance as a whole, without neglecting any important indicators (including EPC, of course).

     

     Tools You May Need:

    Getresponse

    Guinrank

    Crowdfire

     

     

    Read Also: Where Do You Find The Best Affiliate Programs?

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