Here’s how you can learn how to harness the power of EPC and use the metric to better understand your offer.
EPC stands for “earnings per click.” If you’re new to affiliate marketing, the acronym and the definition may mean little to you right now, but EPC is a metric that is critical to understand and use.
According to Thomas McMahon, Senior Business Development Manager at ClickBank, there’s two ways to look at it. EPC is essentially how much revenue has been generated based on how many clicks have been sent to a particular link or received on a particular link.
“You could be an affiliate sending traffic to an offer that you’re promoting, and the EPC is how much money you’ve made per click. So it’s the dollar amount of sales divided by the clicks you’ve sent… The reason why this is important from an affiliate’s perspective is that it’s a barometer for success.”
A Versatile Metric
EPC is a good metric to familiarize yourself with because of its versatility. Affiliates can monitor the success of any link with EPC. Using a common metric like this empowers affiliates to make decisions about offers they are promoting. Additionally, it allows them to nurture the ones they believe they can scale.
For example, if you’re an affiliate and you’re used to an EPC of $1 (that means you make $1 for every click you send), and you’re promoting an offer and only at an EPC of .80 cents, you can use this information to your advantage by bringing this stat to the vendor.
“So if I’m talking with the offer owner, it might be like a, ‘Hey man, this is doing okay, but I can’t really scale it. I’ve got other offers that are beating it.’ And that offer owner might go, ‘Okay, here’s some custom swipes we wrote for your list,’ or ‘Here’s a commission bump,’ or ‘Here’s a unique subject line we’ve tested internally. No one else has access to it yet.’”
That kind of position can be a game-changer for both affiliates and vendors. Because EPC is so versatile and universal throughout the industry for both affiliates and vendors, it makes conversations more straightforward and easy to understand.
A Decision Making Tool
EPC can also be used to decide which traffic sources to double down on and which traffic sources to cut. If you notice that a particular traffic course is producing an EPC of $1.50 and another is only producing an EPC of .75 cents, you may want to consider putting more ducks in the one with the higher EPC.
Tyler Larson, writer for Tune–a platform for marketing partnerships, believes the power of EPC lies in the fact that it’s an agnostic metric:
“The metric doesn’t care how high your conversion rate is. It doesn’t care that exclusive payout you may have or the sheer number of clicks you generated. Earnings per click cuts through the clutter and gives you the exact amount of money you can expect to receive for every click you purchase based on historic performance. With that knowledge, it is just up to the affiliate to get their cost per click under their earnings per click to be profitable.”
The Final Word on EPC
If you’re an affiliate, using EPC as your metric of choice can help you leverage your position, make decisions mindfully, and level up through the noise of data. While other metrics can serve important purposes in your business planning, EPC is truly the only one that can exist as a common denominator for all offers, even down to a link by link basis.
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