Marketing has evolved in recent times, with the advancement of technology, and today, affiliate marketing is arguably one of the strongest aspects. Affiliate marketing basically takes place online, therefore, there are metrics used to measure success, one of which is the earnings per click (EPC). EPC is a common payment model that affiliates use to determine the value of clicks they bring to their affiliate partners.
What is the meaning of EPC?
The acronym EPC stands for “earnings per click” or commonly called pay per click and is essentially a rate of commission that you earn as an affiliate through every click you generate using your affiliate link. As an affiliate marketer, it is important that you know how much you would earn per click, as it is very important for drawing up a marketing campaign.
In your marketing campaign, you should analyze the most effective strategies, and consequently the most effective links, which you then have to focus more on. It is also important that you devise new means to increase conversions from ineffective links.
The EPC payment is calculated based on the affiliate scheme, in which terms and conditions would be sorted out in the agreement stage. With this, certainly, some affiliate schemes pay more than the others.
What does EPC stand for?
Yes, EPC stands for earnings per click, however, its exact meaning isn’t that. Taking a closer look, EPC is actually a formula that estimates the mean average value of all the clicks you get as an affiliate, and not exactly the value of individual clicks on their own.
The formula enables you to analyze data on several clicks and gives returns to the model of your earnings per 100 clicks. More accurately, EPC should be “earnings per 100 clicks” because that’s what the formula works with. EPC’s model and formula are widely used today by most affiliate marketing schemes and websites.
What is the need for EPC?
Affiliate marketing is complex and requires lots of analysis to track marketing success, and also earnings the follow. A click or an individual action carried out by your target audience may not necessarily make you any money directly. For example, a customer might sign up or browse through the products list on the site but doesn’t purchase any item. In such a situation, they clicked, but no earnings were made.
When such happens, chances are you wouldn’t earn as much as when they went on to make a purchase. This is one of the strong reasons for the EPC formula, which targets only actions with monetary value, rather than just any click on your affiliate link. However, some marketing schemes also offer commissions for other actions.
Practical Models of EPC
Take, for instance, you are part of an affiliate scheme that offers different levels of commissions based on customer actions. Assuming following the link earns you nothing, sign up is $2, and purchasing a product is $4. Your EPC estimation should not consider link clicks since they earn you nothing.
On the flip side, it focuses more on sign-ups or customer purchase, which earns more. Also, although the $4 looks more lucrative, the $2 is more rewarding and gives you higher chances of earning. In the end, it all boils down to understanding the most valuable action and working with it.