EPC or “earnings per click” is a common payment model for affiliate schemes, and a formula that affiliates can use to determine the bulk value of the click-throughs that they bring to their affiliate partners. Earnings per click is widely used with PPC or pay per click affiliate schemes that pay out for each click-through an affiliate generates.
If you want to learn how to make the best use of your affiliate analytics on per click earning sites, and how to use EPC to help you to determine profitable and not-so-profitable affiliate schemes and campaigns so that you can fine-tune your efforts to maximise your pay per click income, read on to learn everything you need to know.
What does EPC mean?
EPC stands for “earnings per click,” and for pay per click affiliate marketing schemes, this is outlined as the rate of commission or payment that you earn for your click-throughs or the activity you achieve on your affiliate links.
Knowing how much you earn for each click you achieve is of course fundamental to calculating your affiliate marketing earnings and making your affiliate marketing campaigns work for you, because it will help you to determine how much you are going to earn, as well as which links are the most effective, and those that need more work. However, knowing the value of each individual click is often meaningless – because some clicks might earn more than others, and some none at all!
EPC is the way that commissions for pay per click affiliate schemes are calculated and determined-put simply, it tells you the value of the clicks you win within the payment structure your affiliate scheme offers.
What is EPC for?
Whilst EPC stands for earnings per click, this is actually a little misleading. EPC is a formula that works out the mean average value for the clicks you achieve, and not simply the value of any one click on its own.
It is a cost per click formula that allows you to analyse data on multiple clicks all at once, and returns a result of your earnings per 100 clicks, and not just on one click on its own-so it should really be called “earnings per 100 clicks,” to be totally accurate!
EPC is a common form of payment structure for affiliate websites, as well as a valuable analytics tool for affiliates, because it is designed to provide an insight into the success of your pay per click referrals. A click, or individual action might not make you any money in and of itself-for instance, having a high bounce rate, or a lot of clicks that don’t evolve into sales or sign-ups might constitute a click, but not necessarily any earnings. Also, different types of sign-ups or purchases at varying levels can earn different amounts of commission, and so working out the average across a representative sample of your clicks is important.
An EPC example to outline the principle can be given as a set of 100 clicks that earned you a total of $80-in this case, the EPC is $80, or $0.80 per individual click.
Using EPC allows you to see how much money you earn for each 100 clicks you achieve-averaged out across all of the 100, and taking into account both high value and low value clicks.
Ultimately, EPC gives you a big-picture view of your promotions and marketing endeavours, so that you can see how much money each batch of clicks earns for you, and assesses the total value of your efforts.
Affiliate marketing EPC
Affiliate marketing EPC is widely used on per-click earning sites, to give you a cost-per-click formula that allows you to see your earnings at a glance across the board, without having a huge table or list of clicks to work through and add up to see your final figure.
Good affiliate schemes provide EPC information as part of their wider analytic tools for affiliates, to allow affiliates to track their success in real time, identify and build upon highly profitable links and promotions, and establish what is not working and why.
This is particularly important for affiliates that bring in large amounts of traffic for their partners, and those that use a wide range of different links and platforms to promote them, as EPC enables quick and easy side by side comparisons that translate into real earnings as part of your full range of analytic metrics.
For instance, say you work with an affiliate scheme that offers different levels of commissions depending on the sign-up or action achieved from each click on the same link-$1 and $2 respectively for this example, to keep things easy.
It might seem that a $2 click is obviously more lucrative-but maybe not! If you can tempt three of your prospects to make the $1 sign up for every one that makes the $2 sign up, the $1 sign ups actually pay our more for your effort, because the payment floor is lower or easier to achieve.
Even if your affiliate scheme doesn’t provide a ready-produced EPC table for you, it is really simple to work out your EPC for any given campaign or partner, if you know how to calculate EPC yourself.
To calculate EPC for any given campaign, just do the following:
Add up the total earnings for the campaign or timeframe that you are working with, divide this by the number of clicks received, and multiply by 100-this provides you with the earnings per 100 clicks, or the EPC result.
EPC affiliate programs
EPC affiliate programs are schemes that pay commissions per 100 clicks achieved, making it easy to assess the profitability of different affiliate partnerships side by side, as well as showing how different campaigns and links for the same product or partner perform compared to each other.
For instance, say you are working with two different affiliate partners within the same affiliate scheme.
If one of the scheme’s EPC results shows that you are getting less clicks overall, but earning more per 100 clicks than the other scheme, you might want to consider dropping the lower-paying scheme to put more effort into the more profitable option, or alternatively, concentrating on the poorly performing scheme to improve your results.
Additionally, if you use lots of different links for one scheme and promote them in different ways and in different places, the EPC formula will tell you which links and platforms are producing the best yield, allowing you to either concentrate on these areas or work to improve the less successful links.
How to use EPC to boost your affiliate marketing campaigns
Working out the EPC for each of your affiliate partnerships and individual links and campaigns provides a valuable and easy to understand way to see how your efforts are paying off, and what is going right – or wrong!
Here are some of the ways that EPC can help you to compare and boost your affiliate marketing campaigns.
• Calculate your earnings per click formula to show how much you earn from each campaign or affiliate scheme.
• Compare different affiliate partners side by side to see which one earns the most, regardless of their base value per click.
• Work out which website or advertising platforms that you use produce the highest yield and income.
• Assess how different links perform in comparison to each other.
• Match historical data with more recent data to see if your campaigns are improving or beginning to slow down.
• Work out whether you earn more from lower cost sign-ups that are easier to achieve, or higher cost sign-ups that are not so easy to win.
• Judge whether paid advertising is worth the money by identifying how much you earn compared to how much you spend.
• Spot problems such as invalid links, high bounce rate and broken links and work to correct them.
• Carry out A/B testing for two versions of your website to establish which is the most effective and profitable.
These are just a few of the many different applications of EPC comparisons, which help you to see at a glance how much money 100 clicks earns you from any given scheme or platform.