If you are an affiliate marketer and if you are running an online affiliate blog, then this term EPC seems to have real means of estimation of your blog success.
Generally, affiliate marketers consider sales as a success which is quite obvious.
In fact, it is one of the metrics that help you determine if your blogging efforts are effective or not, and the most important is the EPC value.
In this article, we are defining this term in a broad manner:
- The meaning of EPC in affiliate marketing
- Effectiveness of EPC
- How to calculate EPC
Some affiliate partners like Amazon can readily provide you with the EPC in percentage, but it is good if you know how to calculate it yourself.
For more detail let’s read this further. If you are an affiliate product seller or a product owner, you can use this article to know the EPC metric in a better way.
What Does EPC Stand for in Affiliate Marketing?
The term EPC stands for Earnings Per Click in the affiliate world, and it is an ‘industry-wide metric’ for finding the average commission in dollars per 100 clicks.
What is the EPC in Affiliate Marketing?
It is the approximately predicted amount that you can earn for every 100 clicks on an affiliated link.
It is usually published by affiliate marketing network companies that help publishers to compare the earning potential of different affiliate marketing network companies.
The product sellers often show these Metrics to possible affiliates to exhibit how much profit their program is making.
As an affiliate marketer, Earnings Per Click tells you the possible earnings of the affiliate marketing program you are planning to consider for your funnel.
For example, if you are trying to promote a product from an e-commerce site so that you can earn a commission from this if the user buys from your referred link.
Then as an affiliate, you will receive a custom link of that product, which you have to promote and advertise to your audience/ visitor.
Any person from your audience/ visitor who clicks that link will go to that product page, and e-commerce sites know that it was you who referred that possible client to that particular product page. Thus comes the concept of EPC.
The below paragraphs are showing how to calculate EPC step by step in detail so even anybody can calculate Earning Per Click easily.
How To Calculate EPC?
As introduced above, the basic formula for EPC is equal to the rate of the amount of the commission earned divided by the total number of clicks.
EPC = (Total earned commission amount) / (total no. of clicks)
In the example given, If two people (person A and person B) clicked your affiliate link and went to the Amazon site.
Person A purchased for $25 and the other person B did not make any purchase through this link, just watched the product and was unwilling to buy. In this situation, if the commission rate is 10%, you will earn a commission of $2.5.
Now, if you divide your commission of $2.5 by two clicks,
your EPC will be $ 2.5 / 2 = $1.25. (but this is not real EPC)
Another example :
If there are 10 clicks on your link and only 1 person bought a product, you will still earn $2.5.
But your EPC will be less that is calculated as —–> $2.5 / 10 = $0.25.
Now, this can be a little confusing, there is a tricky calculation involved in it. EPC is generally shown by multiples of 100s. Actually, EPC tells you how much money you made with every 100 clicks.
For real EPC, 100 clicks are a must for accurate calculation.
Let us say that you got 100 clicks, and the total commission you received is $8.
If you divide $8 by 100, the EPC is $0.08.
Best way to use EPC for Your Affiliate Marketing Campaigns:
For improving your EPC, you all need to monitor the earnings per click trends.
You regularly need to keep monitoring the changes, whether it is good going or loss-making.
Just be alert when the has changed any policy that affects the affiliate conversion rate.
If your EPC reduces, there may be a possibility that the affiliate provider has done something to divert affiliate traffic to areas that don’t make you a commission.
Consider these important pointers that play a significant role for a smart marketer if utilizes it can boost the conversion up to 20% which is very significant.
- Tack weely detail of affiliate partners for performance and commission percentage change. If you find that affiliate commission is not worthy then change your affiliate product and provider to better.
- Always keep experimenting with the product you think has the potential to bring more commission even if it is not that popular in the public domain by your copywriting skills.
- Don’t do much experiment with your already best-performing product, let it work as it is performing. Because it is an optimal performer, altering with its marketing pattern can lead to downfall.
Also, if you have or are ready to grow a good number of followers on your social networks like YouTube, Facebook, and Instagram, you can use your convincing power to promote a product they would be interested in buying.
This was all about EPC in affiliate marketing and ways to calculate it, you can improve your target audience to make more profits.
EPC is only one of the metrics to determine the performance of your target product as an affiliate marketer and there are a lot of other terms and metrics like impressions, CTR, etc which are important as well. So keep your eye on that as well.
You must be able to analyze valuable insights of your data from your dashboard, and then make the right decisions from your analysis.
The most important point of the EPC is for you to decide the reason for your low earnings, and then take the proper steps to correct the mistakes.
With EPC, you can grow your affiliate business process, and then you can make calculated business decisions to grow your affiliate marketing revenue.
If you have any queries regarding EPC in affiliate marketing make sure you drop a comment below.