What is EPC in affiliate marketing? And how to make the most of it?

In the realm of affiliate marketing, understanding EPC (Earnings Per Click) is crucial for optimizing revenue and refining marketing strategies. This guide offers an in-depth look into the essence of EPC, its calculation, strategic applications, and how it can revolutionize your affiliate marketing endeavors.

This post is created by BixGrow – the top-rated affiliate marketing app on Shopify.

About EPC in affiliate marketing

EPC Definition

EPC, or Earnings Per Click, is a fundamental metric in affiliate marketing that measures the monetary value generated per click-through on affiliate links.

Unlike traditional payment models like CPC or PPC, EPC provides a comprehensive view by evaluating the aggregate value of multiple clicks.

EPC is the metric that shows the effectiveness of affiliate marketing strategies. It empowers publishers &affiliates to measure the earning potential of different marketing campaigns accurately. Also, merchants can check the EPCs of various affiliates to tell which ones are the most well-performed affiliates and the trends of their affiliate program.

How to calculate the EPC in affiliate marketing?

Calculating EPC is simple: EPC = Total Commissions Earned/Total Clicks

For instance, if a commission of $250 is earned from 100 clicks leading to a sales page, the EPC would be $2.50.

Evaluating EPC in affiliate marketing: Examples

Consider a scenario where a publisher runs two campaigns:

• Campaign A offers a commission of $36 per successful order and accumulates 700 clicks, resulting in $3600 revenue. Thus, the EPC for Campaign A stands at $5.14.
• Campaign B, on the other hand, offers a higher commission of $40 per successful order but gathers only 70 customers from the same 700 clicks, yielding $2800 revenue. Consequently, the EPC for Campaign B is $4.00.

In this illustration, despite Campaign B’s ostensibly higher commission rate, Campaign A emerges as the more lucrative option with a higher EPC of $5.14, indicating superior revenue generation per click

Factors Influencing EPC

Conversion rate impacts

In affiliate marketing, EPC has a correlation to the conversion rate, which reflects how effectively clicks are converted into completed transactions. However, it is important to realize that while EPC provides valuable insights, it does not translate into actual profits. Publishers must also consider Cost Per Click (CPC) to accurately assess net profits.

Calculating net profit per click

Net Profit per Click = Earning per Click − Cost per Click

If the EPC exceeds the cost per click (CPC), the campaign proves profitable.

Therefore, if the EPC surpasses the CPC, the campaign becomes profitable.

Strategic campaign selection

To maximize earnings, an affiliate indeed needs to prioritize campaigns with a higher Return on Investment (ROI). Understanding EPC in affiliate marketing will make this decision-making process easier, guiding affiliates toward campaigns that promise superior revenue generation per click.

Contrasting PPC with EPC

While EPC focuses on the earnings associated with clicks, Pay-Per-Click (PPC) advertising reimburses publishers for each click on their ads. Notably, PPC campaigns, especially search engine campaigns, represent an important aspect of PPC advertising strategies.

Tips to use EPC in affiliate marketing

A deep understanding of EPC can be a strategic way that enables marketers to optimize promotional efforts, identify which parts of affiliate programs yield the most, and refine campaign strategies for maximum profitability.

Here are some tips to make the most with insights you get from EPC:

1. EPC changes depend not only on marketing methods but also on the products themselves. Even subtle differences, like the color of a product, can impact EPC. Adjusting how products are displayed, enhance product data feed richness, can make a difference.
2. EPC varies across different advertising networks and affiliate programs. Merchants and affiliates can use this information to better allocate their resources.
3. EPC allows for detailed analysis of affiliate links and campaigns, helping marketers focus on high-yield campaigns.
4. Trends affect EPC.
5. Using A/B testing with EPC insights helps to improve affiliate websites over time.

FAQs

Wrap it up

In conclusion, EPC in affiliate marketing serves as a strategic compass in affiliate marketing. It helps:

• guide marketers toward optimized revenue streams and sustainable success
• and anticipate the complex landscape of affiliate marketing with confidence and foresight.

Embrace EPC as your guide it will unlock the transformative potentials of affiliate marketing today!