Can someone explain EPC vs CPA rate.

10 years ago

Cost-Per-Action (CPA) - This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.

Earnings-Per-Click (EPC) - This is a metric to measure the effectiveness of being able to turn a click into commissions.

Formula: EPC = (Clicks/$Commissions Earned)

* Note, come companies, like Commission Junction (CJ's) change the definition slightly. In CJ's case, EPC refers to earning per 100 clicks.

Formula: Commission Junction EPC = (1/100)*(Clicks/$Commissions Earned)

Source: matthewbredel dot com (I don't have enough posts to properly attribute the source.)

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chaseclicks

10 years ago

Originally Posted by Bill D-G

Cost-Per-Action (CPA) - This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.

Earnings-Per-Click (EPC) - This is a metric to measure the effectiveness of being able to turn a click into commissions.

Formula: EPC = (Clicks/ Earned)

* Note, come companies, like Commission Junction (CJ's) change the definition slightly. In CJ's case, EPC refers to earning per 100 clicks.

Formula: Commission Junction EPC = (1/100)*(Clicks/ Earned)

Source: matthewbredel dot com (I don't have enough posts to properly attribute the source.)

Great post explaining the difference. CPA is the payout of the offer you're promoting, put simply. EPC helps you judge what overall you're earning per click. When splitting testing a campaign, its helpful to see what your click sources are returning for an EPC to decide which is the converting best with volume.

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ChrisBa

10 years ago

Originally Posted by Bill D-G

Cost-Per-Action (CPA) - This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.

Earnings-Per-Click (EPC) - This is a metric to measure the effectiveness of being able to turn a click into commissions.

Formula: EPC = (Clicks/ Earned)

* Note, come companies, like Commission Junction (CJ's) change the definition slightly. In CJ's case, EPC refers to earning per 100 clicks.

Formula: Commission Junction EPC = (1/100)*(Clicks/ Earned)

Source: matthewbredel dot com (I don't have enough posts to properly attribute the source.)

Dead on, good explanation

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Omid

10 years ago

Originally Posted by Bill D-G

Cost-Per-Action (CPA) - This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.

Earnings-Per-Click (EPC) - This is a metric to measure the effectiveness of being able to turn a click into commissions.

Formula: EPC = (Clicks/ Earned)

* Note, come companies, like Commission Junction (CJ's) change the definition slightly. In CJ's case, EPC refers to earning per 100 clicks.

Formula: Commission Junction EPC = (1/100)*(Clicks/ Earned)

Source: matthewbredel dot com (I don't have enough posts to properly attribute the source.)

Good explanation, thank for adding value to this forum!

~ Omid

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JasonWestwick

10 years ago

Originally Posted by Bill D-G

Cost-Per-Action (CPA) - This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.

Earnings-Per-Click (EPC) - This is a metric to measure the effectiveness of being able to turn a click into commissions.

Formula: EPC = (Clicks/ Earned)

* Note, come companies, like Commission Junction (CJ's) change the definition slightly. In CJ's case, EPC refers to earning per 100 clicks.

Formula: Commission Junction EPC = (1/100)*(Clicks/ Earned)

Source: matthewbredel dot com (I don't have enough posts to properly attribute the source.)

Great post, thanks.

Remember when assessing EPC for a potential offer to run, ask your AM if it is converting by the traffic source of your choice, no point targetting an offer with great EPC's but is being promoted on a completely different traffic source.

Good luck

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digitaldirect11 10 years ago

Great post. Thanks!!
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williamrs

8 years ago

Originally Posted by JasonWestwick

Great post, thanks.

Remember when assessing EPC for a potential offer to run, ask your AM if it is converting by the traffic source of your choice, no point targetting an offer with great EPC's but is being promoted on a completely different traffic source.

Good luck

Yes, right... and more than that, the network EPC isn't very relevant, because that number represents the traffic from many traffic sources being generated by affiliates with different skills.

Analyze the payout and the offer itself, instead of assuming that the network EPC will be your EPC.

W

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Lucas Becker

10 years ago

Originally Posted by Bill D-G

Cost-Per-Action (CPA) - This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.

Earnings-Per-Click (EPC) - This is a metric to measure the effectiveness of being able to turn a click into commissions.

Formula: EPC = (Clicks/ Earned)

* Note, come companies, like Commission Junction (CJ's) change the definition slightly. In CJ's case, EPC refers to earning per 100 clicks.

Formula: Commission Junction EPC = (1/100)*(Clicks/ Earned)

Source: matthewbredel dot com (I don't have enough posts to properly attribute the source.)

Welll put, I'm sure it will help many beginners here.

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riselift

8 years ago

ya, it's pretty confusing

so does EPC mean earnings per click?

so if the EPC is $1 ... does that mean everytime someone clicks the link I get a dollar?

or does it mean something else?

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seregap

8 years ago

Originally Posted by riselift

ya, it's pretty confusing

so does EPC mean earnings per click?

so if the EPC is $1 ... does that mean everytime someone clicks the link I get a dollar?

or does it mean something else?

not necessarily a dollar paid for every click. it simply means you EARN a dollar per click ON AVERAGE.
basically means if you earned $1000 for 1000 clicks your epc=1
you could have earned $10 per click for 100 clicks and 0 for the remaining 900 clicks, your epc is still =1

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zpoll92

8 years ago

Originally Posted by Bill D-G

Cost-Per-Action (CPA) - This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.

Earnings-Per-Click (EPC) - This is a metric to measure the effectiveness of being able to turn a click into commissions.

Formula: EPC = (Clicks/ Earned)

* Note, come companies, like Commission Junction (CJ's) change the definition slightly. In CJ's case, EPC refers to earning per 100 clicks.

Formula: Commission Junction EPC = (1/100)*(Clicks/ Earned)

Source: matthewbredel dot com (I don't have enough posts to properly attribute the source.)

This is the exact formula which you should use. Epc's are only indicating how much money have you earned per click. This is why it's name is: Earnings Per Click = EPC

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luqmankyz

8 years ago

Originally Posted by Bill D-G

Cost-Per-Action (CPA) - This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.

Earnings-Per-Click (EPC) - This is a metric to measure the effectiveness of being able to turn a click into commissions.

Formula: EPC = (Clicks/ Earned)

* Note, come companies, like Commission Junction (CJ’s) change the definition slightly. In CJ’s case, EPC refers to earning per 100 clicks.

Formula: Commission Junction EPC = (1/100)*(Clicks/ Earned)

Source: matthewbredel dot com (I don't have enough posts to properly attribute the source.)

Thank you for in-detail explanation.

EPC comes in to play only when we use advertisement to promote our offer link? If we use no advertisement then there is no need to worry about EPC?

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gasura

8 years ago

Originally Posted by luqmankyz

Thank you for in-detail explanation.

EPC comes in to play only when we use advertisement to promote our offer link? If we use no advertisement then there is no need to worry about EPC?

Regardless if it's free of paid traffic, you will always have an EPC. But yes, if you are using free traffic then you wouldn't have to worry about EPC as much since you are not spending anything.

I had problems understanding EPC at the beginning too, maybe the below example will help newbies understand better:

You have chosen Game A from your affiliate network to promote and the CPA for Game A is $1.50 per lead.

Your choice of traffic source is Facebook PPC (pay-per-click advertising).

After 100 clicks you managed to get 1 lead which earned you $1.50, so your EPC is $1.50/100 = $0.15

After some tweaking you are now getting 1 lead every 50 clicks, so your EPC now becomes $1.50/50=$0.30

Now in order to have a positive ROI (earn more than you spend), your cost-per-click (CPC) on Facebook needs to be lower than your EPC. If your CPC=$0.10 and your EPC=$0.30 then you are winning, otherwise you are losing.

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HayleyS

5 years ago

Originally Posted by Bill D-G

Cost-Per-Action (CPA) - This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.

Earnings-Per-Click (EPC) - This is a metric to measure the effectiveness of being able to turn a click into commissions.

Formula: EPC = (Clicks/ Earned)

* Note, come companies, like Commission Junction (CJ's) change the definition slightly. In CJ's case, EPC refers to earning per 100 clicks.

Formula: Commission Junction EPC = (1/100)*(Clicks/ Earned)

Source: matthewbredel dot com (I don't have enough posts to properly attribute the source.)

It is great that you provided us with such a meaningful explanation and I am sure that this information will be helpful for all the readers of this forum.

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Kamalesh Bhol 3 years ago

Thanks for your reply and give a clarification about EPC and CPA ???
Many many Thanks

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finerpleasures

10 years ago

i;m still confused

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MediaEncounterOmar

8 years ago

go for the higher EPC. More of a profitable campaign but usually not always the case. I usually go for the EPCs .

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corde

8 years ago

Yes, it's a great explanation.

This means that the closer to zero you're more money you earn.

If you earn 10.000 with 100 clicks = 100/10000 = EPC = 0,01

And always depends on the price of the offer and the price that you pay for the click.

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Anne0521

8 years ago

Hard to digest but thanks for the explanation guys!

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badboy_Nick

8 years ago

Word from the wise: stick to the Cost-Per-Lead (CPL) business model. You get paid a lot more rather than per click or sometimes camouflaged "action" (CPA) which can be per sale or confirmed acquisition.

CPL means you get paid for every lead you deliver, minus the dupes, hoaxes and invalids of course. But its a set price for every form-submit you send over. Also, ensure you promote products that pay at least $30-40 bucks per lead ... these are the most profitable and make you successful a lot quicker than your average run-of-the-mill zip and email submits which only pay a couple $1-2 bucks.

Any questions just let me know,
Nick

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charby5770

6 years ago

I don't know who is doing the math here but earning per click is earnings divided by clicks. Basic math definition is "per" means "divided by" NOT the other way around!!

If you sent out 1000 clicks and earn $453 your earnings are $453 and your clicks is 1000. Therefore EPC is 453 / 1000 or $0.435 EPC. You want it it to be as HIGH as possible not as close to zero as you can get.

So if you are sending solo ads or other pay per click campaign your EPC > than CPC (cost per click).

If you use the backwards math above you cannot compare a winning campaign to a losing campaign.

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sergi

6 years ago

Originally Posted by charby5770

I don't know who is doing the math here but earning per click is earnings divided by clicks. Basic math definition is "per" means "divided by" NOT the other way around!!

If you sent out 1000 clicks and earn $453 your earnings are $453 and your clicks is 1000. Therefore EPC is 453 / 1000 or $0.435 EPC. You want it it to be as HIGH as possible not as close to zero as you can get.

So if you are sending solo ads or other pay per click campaign your EPC > than CPC (cost per click).

If you use the backwards math above you cannot compare a winning campaign to a losing campaign.

And you are right. Lots of people have said "what a great post" when the simple formula of EPC was wrong. Amazing how people don't pay enough attention and say "it's great" just because other people agreed it's great.

The logic is simple: Eearning per Click = Earnings / Clics

Cheers!

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CPABeyondNetwork

6 years ago

First post has explained good. That's all you need to know about a difference between a CPA and EPC.

Best regards,

CPA Beyond

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AdWorkMedia

6 years ago

This is a little off topic but now that everyone on this thread has provided good analysis on how the EPC compares to the CPA payout I just wanted to add that the EPC stat is usually much more significant than the CR (conversion rate) stat when analyzing your performance since EPC is directly correlated to overall earnings. That is a common question we receive from our affiliates.