| Understanding EPCs - Earnings Per Click (here after referred to as EPCs) are the performance numbers the marketing industry is driven by. |
Whether you are a product owner attempting to attract good affiliates or an affiliate looking for profitable offers to promote it is essential you understand how to calculate these numbers and how others may manipulate them.
Fortunately, the maths required is very basic and can be explained with a few simple examples.
Let’s assume you sell an ebook online. You have driven 1,000 clicks to the sales page, which had a conversion rate of 5% meaning you sold 50 copies at $30. EPC = Copies sold x Price / clicks = 50 x $30 / 1,000 = $1,500 / 1,000 = $1.50
That means you earned $1.50 for every click you sent to the site.
This is the first way that product owners mislead their affiliates. If the product owner earns $1.50 for every click he sends to the site, even if an affiliate had an identical traffic source, he still wouldn’t earn the same amount unless the product owner paid 100% commission (not very common).