“EPC” Explained and Why Offer Payouts are Irrelevant

Chad Willis Marketing, Uncategorized 0 Comments

EPC. Earnings Per Click.  Probably the most important metric to keep track of for affiliates, beginners and advanced alike.

Let’s define it and give an example.

EPC = total revenue / number of clicks

You’re advertising a product that pays $50/sale on Facebook Ads.  Your ad gets 1000 clicks, and from those 1000 clicks, 4 converted to sales.  In this test, your EPC would be $.20 ($200/1000).

Tracking and effectively utilizing the Earnings Per Click metric is essential to success in affiliate marketing.

Without it, it’s easy to delude yourself into thinking that one offer is performing better than another, simply because the payout is higher.

Payouts don’t mean shit.  EPC does.

A $4/lead offer can be more profitable than an offer paying $50/sale, it all comes down to how well it converts.  Would you rather have 150 $1 leads or 1 $100 sale?

Money is money.

That said, be mindful of what you’re paying for each click.  If one campaign/offer has a higher EPC, but the cost of the campaign negates it, then the better EPC is meaningless.

Example:  You’re running two PPC dating campaigns, one with AsianDate and one with BlackPeopleMeet.  After sending 1000 clicks to both, AD’s EPC is $.55, while BPM’s is $.40.  However, you’re CPC (Cost Per Click) for AD is $.35, while the CPC for BPM’s campaign is only $.15.  

On those 1000 clicks, you’re profiting $150 from AsianDate, and $300 from BlackPeopleMeet, even though it’s EPC was significantly lower.

Revenue is generally irrelevant when it comes to your bottom line, profit is what you need to focus on.

Beginning affiliates far too often obsess over offers with high payouts, and ignore lower paying offers thinking they can’t make as much money.

I had the same issue.  I was always gunning for the $9/lead dating offers that required a lengthy registration, when in reality the EPC’s of the $3.50/lead first-page submits were twice the former.

It may sound like advocating running lower payout offers, which I’m not, that would be dumb.

In reality, you should test as many offers in your niche as you can afford.  

Once you have nailed down one or two of the offers in the vertical you’re targeting, you can simply focus on scaling those campaigns.

Consulting your affiliate manager at the network you’re running with is a great way to get the inside scoop on what’s hot.  Remember, affiliate networks only make money when you do, so it’s in their best interest to provide you with what you need to be successful.

 

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