Earnings Per Click (EPC), also known as Pay-Per-Click or PPC, refers to how much an advertiser pays when someone clicks their ad. It's one of the most important metrics used by online advertisers because it tells them whether they're making money or not. You need to know exactly how much each click costs before you decide if you should advertise with that company.
In simple terms, Earnings Per Click equals How Much Each Advertiser Paid For Clicks divided By The Number Of People Who Actually Saw That Advertisement. In other words, if you see 100 people who clicked on an advertisement and only 10 actually bought something, then the EPC is $10/click. This number is often referred to as Cost Per Conversion. If you want to know more about what these numbers mean, check out our article What Is CPC?.
Let's say you were looking at a product called XYZ.com (not real). They have 5 different ads running - all targeting keywords related to XYZ products. Let’s say 4 of those advertisements are selling well enough that you think there might be some potential customers. You would like to test just 1 of these ads so you could figure out which one converts better. Which one do you choose? Well, here's where things start getting tricky.
You've got 3 options:
1.) Go through Google Ads and select the one that gives you the best ROI.
2.) Use the Google Analytics tool to measure conversion rates based on traffic sources.
3.) Try and guess which one works the best using basic math.
Obviously option #1 was the easiest solution but let's talk about why we don't recommend doing it. First off, while it may seem easy, it isn't always accurate. There are many factors to consider including page load time, bounce rate, etc... When you use Google Analytics, however, you can take advantage of its built-in reporting features that allow you to analyze conversions by source.
You'll notice that after selecting any keyword, you can drill down further into the data to find information such as average duration and session length. These values give you insight into user behavior patterns which helps you determine what kind of users convert well. So, instead of guessing which one worked the best, you can now accurately compare multiple campaigns side-by-side and come up with a winner.
The problem with option #2 is that you won't really know which campaign has the highest conversion until you run them both long enough. While it's true that you can measure conversion rates over time, you still cannot tell how effective a specific advert is unless you have a lot of historical data because you can never predict future trends.
Option #3 sounds great in theory because it allows you to calculate the exact value of every single click. However, it's not very practical because you'd need to spend hours analyzing data and crunching numbers. Plus, even though you may be able to calculate the cost of each individual click, that doesn't necessarily translate into actual revenue.
That brings us back to EPC. Here's how you break down the calculations needed to create an EPC value:
Cost = Total Cost / Revenue
Total Cost = Total Costs x Average Duration + Bounce Rate
Average Duration = Avg. Session Length / All Sessions
Bounce Rate = Percent Bounces / All Visits
Revenue = Sales Value * Average Order Amount
Sales Value = Sum of Orders Made / No. of Days Between Start Date & End Date
So, let's go back to the example from above. Say I'm advertising on ABC website. My total cost is $1000.00. If my average visit lasts 2 minutes and 20 seconds and my bounce rate is 30%, the cost breaks down to $0.50/visit. Now, since I made 4 sales during that period, my revenue is $20.00 ($1000*4). To calculate my EPC, divide the total cost by the revenue. Since my cost was $0.50/visit, my EPC is 50%.
Here's another scenario:
Say I am advertising on ABC website again. On day 1, I spent $100.00. During that same period, I made no sales and had a bounce rate of 0% because none of the visitors left without buying anything. Day 2, I spent $200.00 and sold 6 items. Again, 0% bounce rate. Day 3, I spend $300.00 and sell 9 items. Finally, on day 4, I spend $500.00 and sell 11 items. At this point, I've generated $1100 worth of sales, so my EPC is $11.00.
If you're wondering how you can turn this into dollars, simply multiply your EPC by the amount you plan to spend for the month. If you set your budget at $1500, you'll end up spending $7500. Divide that dollar amount by 12 to arrive at $667.33. Take that number and add it to the current balance on your ClickBank account. Your new balance will show up under Account Summary next to the Balance column.
Yes. As mentioned earlier, this is a common misconception among beginners. ClickBank does NOT pay for clicks. Instead, they provide a service that enables websites to display advertisements on their platform. Some websites charge publishers, others charge advertisers, and yet others charge nothing. But either way, it's up to the publisher to earn money from the advertisements displayed.
As you probably already know, the higher your EPC is, the more likely it is that you'll generate a profit. A high EPC means you're generating lots of sales which means you stand to make a bigger profit than somebody with a low EPC. The biggest reason for this discrepancy is due to competition. With fewer competitors displaying ads, everyone has less choice and therefore lower prices. So, the price you pay for every click goes up.
However, you shouldn't expect too much from ClickBank. Even highly successful internet marketers struggle to get past the $5 mark for EPC. And remember, the higher your EPC, the harder it gets. Because more websites are competing for eyeballs, the demand for high quality content grows exponentially resulting in increased competition between advertisers.
There's a saying popularized by Tim Ferriss that says, “It takes around 40k views to become profitable" which basically translates to, "Don't expect to make serious cash overnight". If you're planning on earning big bucks within months, you'll need to put in a ton of work first.
Affiliates do receive compensation for clicks, yes. Most major sites offer commissions ranging anywhere from.05 cents to several dollars depending on the size of the sale and the niche being targeted. For instance, Amazon offers commissions ranging from.25 to 15% depending on the type of item purchased.
To learn more about how affiliate programs function, read our comprehensive post about affiliate marketing.
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Earnings Per Click (or EPC for short) is one of those metrics that might as well be called magic. It seems simple enough at first glance, but it can actually take quite some time and effort to figure out how to calculate exactly right. Once you know how to do this correctly, though, there are several ways to use this number to improve your overall affiliate marketing success rate.
In order to understand what Earnings Per Click really means, we'll need to start with a bit more information about this important stat. You see, every single day, millions upon millions of people visit websites like Amazon or eBay using search engines like Google or Bing. These sites pay advertisers when their ads show up during these searches. The amount paid depends entirely on two factors - the quality of the ad shown alongside organic listings and the relevance of the keywords used by searchers. For example, if someone searched for an item such as a vacuum cleaner, they would probably expect to find results related to vacuums. If an advertiser were to run an ad for a new model of vacuum cleaner, then search engines would likely deem that ad irrelevant because most users wouldn't even consider buying something so far off-topic.
The second factor here is pretty easy to grasp. After all, who wants to buy a vacuum cleaner if they're not interested in cleaning anything? However, determining the relevancy of specific words within a given page of content isn't always so clear cut. Search engine algorithms attempt to determine which pages contain relevant keywords based on the context in which they appear. This makes sense considering that each word has multiple meanings depending on its position within a sentence. In other words, "vacuum" could mean vacuum cleaner, dirtiness, dusting, etc., while "clean" could refer to cleanliness, tidying, etc.
Based on these criteria, search engines assign scores to webpages containing various phrases of interest. A higher score indicates greater relevance compared to lower ones. As mentioned earlier, this scoring system determines whether or not an advertisement shows up above or below organic search results. Now, let's look at where this whole thing gets interesting.
Gravity is basically another way to measure the popularity of a webpage. Instead of assigning a value to each individual keyword phrase contained within a website, gravity measures the total weight of all keywords across a site. Basically, this means that if a webpage contains 100 different keywords, each with a certain degree of importance, the entire page will receive a gravity score equal to 1/100th of the maximum possible score.
Now, why does this matter? Well, imagine that you have a webpage that features 50 unique product categories. Each category receives a gravity score of 0.5, meaning that half of the available space on the page belongs to each category. Meanwhile, a webpage featuring only 10 products may receive a gravity score of 2.0 simply due to the fact that a larger percentage of the page is dedicated to just a few items.
As you can guess, gravity plays a huge role in determining how much an advertiser pays when running an advertising campaign through a major marketplace like ClickBank or ShareASale. While many affiliates earn significant amounts of income through commissions earned via sales generated by clicks received through advertisements placed on popular websites, the actual payout varies greatly depending on the type of traffic being targeted.
For instance, if a merchant offers $10 for a sale made by clicking on his link, he stands to gain anywhere between $1 and $10 depending on the gravity score assigned to his landing page. With high gravity scores, merchants stand to benefit significantly from their efforts. On the flip side, low gravity means little to no profit potential. To put things into perspective, let's say that I'm offering my own affiliate program on ClickBank for $7 per signup. That means that I'd get a $0.70 commission for every person who signs up through my links. But since my landing page doesn't feature any keywords whatsoever, it would receive a gravity score of zero. So instead of earning 70 cents for each person who clicks on my link, I'd end up losing 30 cents for every person who signed up through my links. Not very ideal, huh?
That's why it's crucial to choose the best keywords for your campaigns. When done properly, this can lead to massive increases in revenue. In addition to choosing the correct keywords, you should also ensure that your landing page receives a reasonable gravity score. Some marketplaces allow you to manually set a gravity score during account creation, while others don't offer this option. If yours doesn't, you'll want to check this before launching a campaign. Otherwise, you risk having to deal with frustrating situations like the one described earlier.
If you've ever wondered what EPC stands for, you're in luck. It represents the earnings per click, and it's one of the primary statistics tracked by major marketplaces like ClickBank. Basically, it refers to the amount of money earned by a seller through the purchase of a particular product after paying an affiliate for every click leading to a conversion.
Of course, calculating EPC takes a fair bit of work. First, you'll need to identify the exact keywords associated with the products you wish to promote. Next, you'll need to come up with a gravity score threshold that determines how much you charge for your services. Finally, you'll need to keep track of conversions over time in order to generate accurate reports. There are plenty of tools designed specifically for tracking EPCs, but unfortunately none of them are free.
To help simplify the process, you can leverage software programs provided by third parties that automatically collect data regarding the performance of your campaigns. One such tool is Smart Links Pro, which allows you to monitor the progress of your campaigns without needing to write scripts or download complicated analytics applications. By monitoring the data collected by Smart Links Pro, you can quickly spot trends and take action accordingly.
While it's certainly true that you won't become rich overnight by focusing solely on EPC, it's still vital to consider this statistic. Ultimately, you'll be able to achieve better results if you focus on both EPC and gravity rather than just one. And hey, if you happen to love math, you might enjoy learning more about the physics behind EPC calculation in general.
Yes, absolutely! According to statistics compiled by ClickBank itself, nearly 90% of affiliates who participate in their network report making six figures annually. Of course, these numbers vary widely depending on the skill level of the affiliate, the nature of her audience, and the size of her portfolio. Still, the average affiliate earns approximately $2,000 to $3,000 per month.
Keep in mind that earnings aren't guaranteed. Successful affiliates often experience periods of slow activity due to seasonal fluctuations in demand. It's also worth noting that ClickBank charges a small transaction fee for each payment processed. Fortunately, this fee ranges from 3% to 6%, meaning that affiliates who rely heavily on referrals tend to fare much worse financially.
There are numerous reasons why you might decide to launch a campaign on ClickBank. Perhaps you already sell products online and feel confident in your ability to convert visitors into buyers. Alternatively, you may be looking to build a list of subscribers eager to learn more about whatever topic interests you the most. Whatever the case may be, it's important to remember that ClickBank provides countless opportunities for anyone willing to dedicate themselves to improving their skills.
So now that you understand what EPC really entails, you're ready to begin working towards higher rewards. How exactly do you go about doing this? Read on to discover our step-by-step guide!
First, you'll need to create a profile on ClickBank. Then, select the niche(s) most closely aligned with your personal interests. Next, pick a couple of products that you think are suitable for promoting. Finally, enter your desired EPC. Keep in mind that this number changes constantly throughout the year. Depending on the season, the economy, and a host of other variables, the price of goods may fluctuate wildly. Therefore, you should plan for a wide range of scenarios. Ideally, you should aim for a minimum of 1 cent, but ideally, you should shoot for five cents or more.
Once you've chosen the products that you intend to promote, head back to your dashboard to complete the rest of the setup process. Here, you'll need to add additional details including your email address, phone number, country of residence, and preferred currency. Additionally, you'll configure a welcome message and upload a picture of yourself.
At last, you'll need to verify your identity. Luckily, this part is fairly straightforward. Simply log in to your account, scroll down until you reach the section titled "My Profile," and follow the instructions there.
With everything taken care of, it's finally time to test out your newly configured campaigns. All you need to do is click the Start Campaign button located directly beneath your name. Within seconds, you'll see the result of your hard work.
The most important statistic for any affiliate marketer should be their earnings per click. It's not just about how many affiliates are making money, it's also about how much they're earning. In fact, that number is more often than not one of the main reasons why an affiliate chooses a particular product over another.
In order to increase your income and make sure you stay ahead of other competitors, it's imperative that you understand exactly what EPC stands for. As well as knowing the basics of Earnings Per Click, we'll discuss some tips to increase your earnings per click even further.
Earnings per click refers to how much a visitor earns from each time he or she clicks through to purchase a specific item. This can either be based on revenue generated by the sale itself, or based on advertising cost paid out to the site owner.
For example, let's say I'm promoting a weight loss supplement called Fat Burner X. The company has spent $50 on AdWords ads to get people to visit my website. If I have five visitors who buy the product at a price of $49.99, then I would earn 50 cents commission for every 1 cent spent. That means I earned 5 cents profit for every dollar spent!
That sounds pretty good if you've been spending months trying to find ways to promote something successfully. But there's always room for improvement - so here are four things you should know about EPC.
You might think that when someone buys something online, the seller pays them directly. Actually, both parties share commissions. For instance, with products like Fat Burner X, the customer pays the vendor and the vendor pays me. So if the customer spends $100 buying the product, the vendor gets $70 ($49.99 + $20 shipping), while I receive only $30 ($10 x 5).
So what happens to all those extra dollars? They go back to the advertiser, which in our case is Google. From there, they're split between us and the advertisers. Let's assume we received 10% of the total sales amount. Then Google keeps 80%, and the remaining 20% goes to us. And since I'm getting less than half of the final sales amount, my EPC drops to 3%.
But wait, isn't Google paying us for each click? Yes, but remember that Google is also splitting the profits amongst its partners. Each partner receives 2.5% of the gross amount, leaving 0.75% for the partners. When you consider all these factors together, it becomes clear that EPC is actually calculated differently than it appears.
CJ Affiliate Network provides a great breakdown of how EPC works. Basically, you need to convert at least two conversions before you start receiving payment from ClickBank. You must also maintain active status for 90 days after your first payout to continue earning commissions.
If you don't want to worry about keeping track of everything yourself, clickbank offers a handy tool to help calculate EPC. Simply enter the URL of your landing page, along with the title of the product you're selling, and the link text used in the ad campaign.
Once you do that, you'll see the results instantly. Of course, if you have multiple pages in your funnel, then you'll need to add up all the values for the entire process. Here's an example of how it looks.
Now, you may already realize that having a high EPC doesn't guarantee higher commissions, especially considering that EPC is calculated using different formulas depending on the type of promotion. To give you an idea of what kind of figures you could expect, here's a list of common promotions and corresponding EPC rates.
Top affiliate marketers on ClickBank use various methods to boost their EPC. While you shouldn't necessarily follow such strategies blindly, learning more about them can provide valuable insight for improving your own campaigns.
Since EPC is measured against actual purchases made within 30 days of clicking through to the offer, it makes sense that the longer the period, the better the rate. However, not everyone uses the same timeframe. Some choose 60-day periods, others 120-day periods, and still others 240-day periods.
It really depends upon the nature of the product being promoted. If the offer is highly seasonal, meaning that the majority of traffic comes during certain times of year, then choosing a shorter timeframe gives you a greater chance of capturing that traffic. On the flip side, if the product is sold once a month throughout the whole year, then choosing a long term period allows you to capture the highest possible volume.
On the other hand, if you're running several campaigns simultaneously, then you'd probably prefer to keep them separate instead of mixing them up. By doing so, you ensure that no matter which campaign ends up performing best, you won't suffer a significant drop in EPC.
Average $/ Conversion on ClickBank
A simple way to measure the value of your efforts is to compare your conversion rate to the overall average. With this method, you simply take the percentage of customers converting relative to the total number of visits.
For example, let's say you had 100 potential buyers visiting your website, and 40 of them converted. Your conversion rate would therefore come out to 40 percent. Now imagine you were able to increase your conversion rate to 50 percent. How much did that translate into additional commissions? Well, now your conversion ratio increases to 25 percent, and you end up earning 2x as much as you previously did.
Of course, there are limits to this method. Obviously, the more potential customers you have, the lower your conversion rate needs to be before you begin seeing a positive return. There's also a limit to how far you can push your conversion rate without risking losing too many customers due to poor design. Lastly, the higher your conversion rate, the more likely you are to lose customers because of bad user experience.
Keep in mind that although increasing your conversion rate improves profitability, it does nothing to address issues with quality. Therefore, it's essential that you focus equally hard on ensuring that your audience enjoys optimal browsing experiences.
To learn more about how to optimize your EPC, check out our article titled, 4 Ways to Improve Your Earnings Per Click.
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