If you're looking for ways to optimize your affiliate marketing campaign and get more clicks then you should know about earnings per click. In fact, if you want to make money online with affiliate marketing it's one of the most important metrics that needs to be learned.
Earnings Per Click or EPC refers to how much revenue you earn from each visitor who clicks through to your site from an external source like a search engine. This number gives you a clear idea as to whether you are making any profit off your efforts. If you aren't seeing results then there could probably be something wrong with your website. For example, if you have lots of visitors but only 1% converts then you would need to look at why people aren't converting so well. Maybe your product isn't compelling enough, maybe your landing page doesn't give them enough information, etc. These things all contribute to your overall conversion rate which ultimately leads to the number of conversions you see over time.
So let's say you have 1000 visits per month from Google searches. You also have 10 sales generated from those links that lead back to your affiliate link. That means you made $10k in total income because of those clicks alone. Now imagine someone else has 5x the amount of traffic coming across their link than yours did. They would generate 500 sales, earning them $50k in total income just from these same clicks.
That brings us to our next point...
CPA stands for Cost-Per-Action. It is simply another way to measure how successful your ads were by comparing cost against actual action taken. So if I'm running my ad campaign and I spend $100 dollars per day on advertising and I get 100 signups from that $100 spent, that's a 100 percent ROI. However, if I run an ad campaign where I spend $1000 per day and get 200 signups that's not necessarily a bad thing. The reason being is that now I've got $200 worth of revenue per day instead of $100. With that said, if I had $100 going out every day versus $200, then I'd still consider myself doing better since I am getting twice as many customers per dollar spent.
While we're talking about CPC, there is actually two different types of costs involved when calculating your EPC. There is the cost of acquiring new clients through affiliates vs. cost of retaining existing ones. Let me explain further...
The first type of cost is known as Cost To Acquire New Clients. When referring to this term, we're typically thinking about the cost of building up your list. Whether that involves buying email lists, paying for subscriptions, or other methods, this is essentially the cost you incur before you can start generating any real revenue. Because of this, it makes sense that it is referred to as Cost To Acquire New Clients.
On the flip side, the second type of cost is known as Cost Of Retaining Existing Clients. This is basically the cost of keeping clients happy and engaged with your company. After they become part of your customer base, you'll want to keep providing value to them in order to ensure they don't leave. It might involve sending emails regularly, offering special deals, discounts, etc. Basically anything that keeps your brand top of mind so they come back again and again.
Now, let's take a step back and think about what happens after you acquire both sets of clients. What do you do with them? Do you send them free offers constantly? Or do you focus on adding value to them so that they continue to buy from you even though they already bought once? Well, if you send too many offers to your current client base, you risk annoying them and driving away potential future buyers. And if you send too few offers, you miss out on opportunities to increase your bottom line.
You end up here because you wanted to know what is eppc in affiliate marketing. But if you're confused by the terms above, no worries. Just read on below and you'll find everything explained clearly.
In some cases, rather than using weekly numbers, you may prefer to use daily figures. One great tool that shows how effective your campaigns really are is called EPC7Day. It measures the effectiveness of your entire campaign based on seven days' worth of data. By taking this approach, you'll be able to analyze performance throughout the week of your campaign, giving you valuable insight into whether certain strategies work best during specific times of the week.
For instance, if you notice that your highest performing days tend to fall between Sunday and Wednesday, you may realize that you need to change your strategy accordingly.
Yes, CJ Affiliate pays a commission based solely on the clickthroughs earned via its network. All commissions come straight from the advertiser without middlemen such as Paypal or Amazon Payments. As mentioned previously, we calculate EPC by dividing the number of clicks by the cost of acquisition. Since the payment comes directly from the advertiser, there's nothing that gets added onto the final price tag.
The main difference between CJ Affiliate and the competition lies in the payout percentages. Both companies offer similar plans ranging from standard 15%, 25%, 35% and 50%. On average, however, CJ Affiliate tends to charge less for the higher tiers and gives slightly lower payouts compared to competitors like Shareasale and ClickBank.
To sum up, EPC is often used to determine whether or not a particular marketer should invest in an advertisement campaign. If you're interested in learning more about this topic, check out our article on how to choose the right niche for your business.
How Does Earnings Per Click Work
Earnings per click or simply referred to as EPC refers to how much a publisher earns from each visitor who comes across his website through an ad.
In case of Amazon Associates Program, publishers earn $1 when their visitors buy something on Amazon after clicking on ads displayed in the product description page. Publishers can also earn commission by referring other affiliates to Amazon program. Every time they refer someone else to join the program, Amazon pays them according to the referral program rules.
The amount earned depends upon the number of products purchased, which are sold by the seller’s account and not those of other sellers. The commissions paid by Amazon vary based on factors including but not limited to the type of item being sold, category, location, etc. For example, sellers may receive 3% to 6% on all items bought via their links while others may only receive 1% to 2%. There are different levels of associate programs available at Amazon depending on the level of sales achieved.
As mentioned above, there are many types of affiliate programs available such as Amazon Associate Program, Shareasale Affiliate Network and Commission Junction. Each has its own unique features like commission rates, minimum threshold sales, payout frequency, payment methods, etc. Therefore before joining any affiliate program always do some research so that you don't end up losing money because of ignorance.
Amazon Associate Program
Payment Frequency - Monthly/Quarterly.
You're probably wondering how you can increase your profits and grow your business. One of the best ways to do that is by learning about new strategies for increasing conversions and driving more traffic. A great way to learn all about those things is through reading articles like these.
Today we'll be diving into one particular strategy called Earnings Per Click or EPC. What does it mean when someone buys something from an online retailer because they saw an ad promoting said product? How much did the merchant pay to advertise their item? This is where our focus lies today as we explain exactly what EPC means in terms of affiliate marketing.
The easiest way to understand EPC is to think about how much money you get paid every time someone clicks on your link and purchases whatever you've advertised. That's right -- each time somebody clicks on your advertisement and makes a purchase, you are getting paid a percentage of that sale. It doesn't matter if the person who clicked on your advertisement was looking at shoes instead of electronics. The point is that you got some sort of commission for bringing them there.
In order to calculate your EPC, you need to know several different factors first. These include:
- Your Click Bank account balance
- The size of your AdSense account
- The number of impressions you made over a certain period of time
- The amount spent on advertising your affiliate links
- And finally...the price of the product being sold
Once you have all of that information, multiply everything together with a little bit of math. Here is the basic equation for calculating your EPC:
So let's take a look at two examples. Let's say you had $100 in your ClickBank account, you spent $10 on ads, you earned $5 back in commissions, and you bought a $50 book from Amazon. You would end up earning a total of $15 from any sales brought to your website via your affiliate links. If you also spent another $20 just so your site looked better, you'd earn even more than that. But wait, there's more!
Remember earlier when I mentioned that there were other important metrics involved in determining whether or not you should spend money on advertising? Well, let me tell you why spending money on ads is such a bad idea.
If you want to make sure you don't waste your hard-earned cash, you must always remember to keep track of your ROI. ROI stands for Return On Investment and refers to the financial return you receive after investing in a specific venture. It basically tells us the ratio between how much we spent compared to how much we earned.
Now you may ask yourself, "Why is that relevant to my EPC?" Because if you didn't use your money wisely, you could actually lose a lot of it. To put it simply, if you buy expensive ads and then only sell cheap books, you aren't going to see very high returns. Instead, you might find yourself losing quite a bit of money before you ever reach profitability.
That brings us to the next factor you need to consider. Are you selling quality items or low priced ones? If you decide to go down the path of low prices, you'll likely want to stick to the cheaper affiliates out there. However, if you choose to try and compete with companies like Amazon, eBay, Walmart, etc., you'll need to offer higher quality goods. Otherwise, people won't trust you enough to shop through your store.
Finally, let's talk about pricing. As soon as you begin offering too many options, your customers will start to feel confused and overwhelmed. They might even leave without buying anything. Or worse yet, they might never come back again. So while having lots of choices is a nice perk, too many options will cause confusion among shoppers.
Keep these things in mind when deciding which affiliate program to join. Once you've decided on which company works best for you, you can move forward setting up campaigns.
As I mentioned above, your EPC in affiliate marketing is based off of several variables. Those include:
1. Your ClickBank Balance 2. The Size Of Your AdSense Account 3. Impressions 4. Spending 5. Price 6. Other Factors
Let's break down each variable individually. First, let's discuss your ClickBank balance. When you sign up for ClickBank, you'll automatically create a free account. After creating your account, you may log in anytime and check your balance using the My Profile page. From there, you will see the following:
Your current balance
Total dollars available
Current date
Next payment date
Payment method
And finally, you'll see your history under History & Transactions. There you'll find your most recent transactions including payments received and payments sent.
Another place you can easily access your ClickBank balance is on your dashboard. Logging in here gives you full control over your finances. You can view your balance, pending payments, and transaction details.
When your balance dips below $0, ClickBank sends you a notification letting you know that you need to send funds in order to maintain your account. Remember though, sending additional funds isn't necessary unless you plan to promote products outside of ClickBank.
Next we'll examine your AdSense account. Like ClickBank, you can visit Google Ads Dashboard to gain insight into your overall performance. Here you can see your daily statistics regarding the amount of income generated on your behalf.
Lastly, let's review your impression count. Whenever someone visits your website and sees your advertisements, you generate impressions. Each impression represents the chance that a potential customer will click on your link. For example, if you drive 100 visitors to your site but 10 of them click on your link, you still generate 90 impressions.
Impressions are used to determine your earnings. Since there are millions upon millions of websites competing for attention, advertisers usually bid against each other in order to secure top placement on search engines like Google, Bing, Yahoo, and others. The highest bidder gets the majority of the spots.
It's worth noting that your competition includes both traditional brick-and-mortar stores and ecommerce sites. You can also expect to face stiff competition from digital marketers who employ SEO tactics to rank highly on search engine results pages.
However, since you're focusing on internet retailers, your biggest threat comes from direct competitors. Fortunately, you can combat this problem by making sure your content stays fresh, interesting, and appealing. This keeps readers coming back for more.
We've now covered three primary components of your EPC: your ClickBank balance, your AdSense account, and your impression count. Now let's move onto analyzing the fourth component of your EPC, spending.
To figure out how many times your affiliate links were clicked, you'll need to analyze data provided by either your tracking software or your web analytics tool. Both services provide detailed reports that show you exactly how well your campaign performed.
Tracking software allows you to monitor every single aspect of your campaign. With this type of software, you can log every visitor, view their browsing habits, track their behavior patterns, record their IP addresses, and much more. All of this data helps you optimize your efforts moving forward.
On the other hand, web analytics tools give you similar insights, but allow you to measure a variety of different indicators. Some common measurements include:
Visitor demographics - these include age, gender, location, education level, interests, and income levels.
Advertising channels used - these include banner ads, sponsored posts, email marketing, social media promotions, and mobile apps.
Search keywords - these help you identify topics related to your products and services.
Traffic sources - these indicate the source of traffic that came across your website and landed on your blog post or landing page.
Conversion rates - these refer to the percentage of visitors who took action once they reached your landing page, such as signing up for your newsletter or purchasing a product.
All of that data gives you valuable clues about what worked and what didn't work during your campaign. Armed with this knowledge, you can tweak future campaigns accordingly.
Since we've discussed four different elements that contribute to your EPC, let's wrap this article up by explaining the final piece of the puzzle. Keep in mind, however, that these calculations change depending on the affiliate network you chose to join.
For instance, if you joined Shareasale.com, your EPC calculation would differ significantly from joining ClickBank. Also, since each platform has its own unique set of rules, it's impossible to predict the exact value of your EPC until you perform the proper analysis.
At least, not without doing extensive research beforehand. Luckily, there are plenty of resources available online to help you get started. Just keep in mind that each system operates differently so you'll need to study carefully.
Earnings per click (or e-CPC for short) refers to the amount of money earned by an affiliate marketer through their sales. Let's look at how that works with some examples below. This quick guide will answer the question, "What is earnings per click (EPC)?," which can be useful when you're trying to decide between two or more affiliate programs.
In order to earn an income from affiliate marketing, it requires time and effort. You must create content, promote that content, attract traffic, convert those visitors into buyers, and finally generate revenue from them. That means there are many different factors involved in making a sale, but one of the most important ones is earning enough clicks. And if you want to make a lot of money as quickly as possible, then understanding how much each click costs -- also known as the earnings per click (e-CPC) -- becomes essential.
So, let's take a closer look at exactly how e-CPC works.
The first thing we'll do is define what an earnings per click actually is. An earnings per click is simply the price of a single purchase made by someone who saw your ad. So instead of saying something like "earnings per sale" or "earnings per lead", we say "earnings per click." It just makes things easier.
When calculating your earnings per click, consider both direct and indirect commissions. Direct commission comes directly from the advertiser themselves. If you get $10 for every person who clicked on your link and purchased whatever product they were looking at, you'd have 10 x $10 = $100 in total earnings. Indirect commission comes from affiliates like yourself, who earn money off of the purchases made by others. For example, if you sold a shirt worth $20, you would receive 20% of the profit ($4). In other words, you could sell a t-shirt for $15 and still end up receiving $5 in profits.
Now, let's talk about the best way to calculate earnings per click and where to find accurate data.
There are plenty of ways to figure out the average cost of a sale, including using Google Analytics' conversion rate tool and plugging in actual numbers from affiliate networks. But the easiest way to see how profitable your campaign really was is to use ClickBank's Gravity Score feature. ClickBank has partnered with ShareASale and CJ Affiliate to provide these services. They are essentially free tools that allow you to enter all the information needed to analyze your performance and compare it to similar campaigns. The results provided give you valuable insights into your own performance and show whether or not you should continue working toward higher payouts.
You may already know that the best place to start promoting your affiliate links is through social media channels like Facebook and Twitter. While this method does work well, it's often difficult to measure its effectiveness over long periods of time, especially when compared against traditional methods such as email blasts or banner ads. With ClickBank's Gravity Scores, you can easily track your ROI without needing any extra software or plugins. You don't even need to change anything on your website.
ShareASale provides a great comparison chart so you can see how well your current efforts match up with the top earners within your niche. Once you've entered your website URL and set up your account, you'll be able to access this information right away. Just check out the screenshot above. The blue line represents your site's overall performance based on 100,000 impressions, while the green line shows the same number for only the past 30 days. The red line indicates the percentage of conversions among those users who visited your page. As you can see, your website performed extremely well during this period.
It doesn't matter if you run a blog, a YouTube channel, or another type of online presence. All you need to do is add your unique link to the form located here. Then wait for the report to come back. After reviewing the results, you can determine what changes you might want to make to increase your earnings.
If you ever feel overwhelmed by the prospect of improving your earnings per click, remember that you're never too far behind. When I started my business as a blogger, I had no idea how to optimize my posts properly. Over time, though, I learned everything necessary to become successful. Nowadays, I'm always happy to share advice and tips with new affiliate marketers. To learn more about optimizing your content, read our beginners' guide to writing blogs.
Once you understand how to calculate your earnings per click, you're ready to move onto the next step. There isn't a universal standard for defining a good ClickBank gravity score because everyone uses slightly different metrics. However, I recommend sticking around somewhere in the range of 0.8 to 1.2. Anything lower than 0.6 is considered low quality, while anything greater than 1.3 is high quality.
Keep in mind that the higher your ClickBank gravity score, the better. A score of 1.0 or above means that your products perform exceptionally well relative to other products in the category. Conversely, scores under 0.7 mean that you aren't doing nearly as well as you could be.
To find out why your score falls outside of this range, try comparing your earnings per click to those of people in the same industry or region. It's also helpful to review your competition's statistics to see how they stack up against yours.
As you're learning, it helps to keep tabs on your competitors. Reviewing their stats regularly gives you insight into what strategies they employ to succeed. You can also use this knowledge to tweak your own strategy accordingly. One of the biggest mistakes I used to make early on was spending hours creating videos rather than focusing on building strong relationships with customers. Eventually, I realized that if I wanted to grow my list fast, I couldn't afford to waste precious time creating content. Instead, I focused on growing my network via social media and word-of-mouth referrals.
These types of activities help build trust and reputation. People will listen to recommendations from friends and family members more readily than strangers, and they won't hesitate to buy from someone whom they trust. By following this approach, I managed to double my subscriber count overnight. Once I established myself as a trustworthy source of information, I began attracting clients almost immediately.
Finally, you shouldn't worry about competing with big names like Amazon. Even if you're starting out small, there are thousands of people willing to put in the hard work required to compete successfully. Remember that there are millions of sites across hundreds of niches, meaning that you can choose a topic that interests you and devote all of your energy to it. If you stick with it, you'll eventually reach the point where you can quit your day job and live comfortably off of passive income.
Hopefully, now you understand the basics surrounding EPC and how to apply them to your own affiliate marketing endeavors. Keep reading, and you'll soon discover all sorts of amazing secrets regarding this crucial metric.
Just follow our battle-tested guidelines and rake in the profits.