A great estimation of the bigger picture!
EPC - Earnings per click
An estimation on how much money you as an affiliate on average can expect to earn per click. Based on CR, commission and order value.
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The higher commission the better, right?
- Not necessary, is our answer.
As an affiliate, you want to make money of course. That is why your eyes probably automatically starts to search after how much commission an advertiser offers, right? If we are describing your behaviour, keep on reading!
The commission is indeed important, but not the most important thing.
A crucial circumstance (among other aspects, of course!) for how much money you will be able to make, is a programs EPC. EPC stands for “Earnings per click”. A programs EPC is calculated based on CR (Conversion Rate), average order value and commission. In other words, it can be explained as the average earning per sent visitor.
Everything is connected
You could say that the result of this three elements, described in the picture above, is what reflects how profitable a cooperation with an advertiser can be.
For example: An advertiser pays 5% in commission, which at first glance may seem low. This cooperation can though be very profitable, if the advertisers CR-value and average order value are high. This will most likely pay of more in the end.
Important to have in mind is that you definitely can earn money from a cooperation with an advertiser with a low EPC. In the end, it is your performance that determines how profitable your cooperation will be, based on your effort, creativity and how willing your followers are to buy the products. All this mixed together may mean that you can perform better than the advertisers average EPC.
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