How to choose best Affiliate Offer?
The reason behind writing this post is very simple. I am a affiliate marketer since last 3.5 years. But I was unaware of this term completely.
I have seen EPC most of the time on my Affiliate Dashboard like Commission junction. Although I don’t know how it works to choose the best campaign for promotion. This is not the case now. I am completely aware of the EPC terminology now.
What is EPC in Affiliate Marketing?
PC stands for Earnings Per Click. But it’s not true completely. It should be Earnings Per Hundred Click. I will tell you why? later in this article.
Definition: EPC (Earnings per Click) is an important performance metrics used by affiliate networks for reporting merchant and affiliate marketers about the performance of any particular affiliate campaign.
EPC gives you an accurate idea of how much money are you generating from each click of an affiliate link?
In other way, just by looking at the EPC of an affiliate publisher. You can estimate easily the commissions you are going to generate.
There is a formula to calculate EPC. It is EPC=Total commission generated on 100 Clicks/100
So, in another way, you can say EPC= Total commission generated/Total no of clicks
For example, if you received a commission of $500 by sending 100 clicks to an offer, then EPC would be $5.
How EPC helps to decide good Affiliate Offer?
EPC is a better way to decide which offer perform better with different payouts. So, it’s a win-win situation for you. You can easily decide which offer should you promote?
Case Study of two affiliate offers from GoDaddy
Suppose GoDaddy is providing two affiliate offers, A and B. One with a payout of $40 and another with a payout of $50. So, obviously, you would think offer with payout $50 is better.
But just by looking at the payout you can’t decide that which offer is best in them? Here EPC is a big factor.
The offer A with $40 payout received 100 leads with a total of 800 clicks. Then the affiliate earns $4000, and the EPC comes out to be ($4000/$800) $5.00.
The offer B with $50 payout received 80 leads with a total of 1000 clicks. So, the affiliate earns $4000 and the EPC for this offer comes out to be $4.00.
So, in the above example, offer A has an EPC of $5.00 whereas offer B has an EPC of $4.00. It shows that an offer with a higher payout is not always a better option.
It is just an example. it doesn’t happen always. But yes, if you are getting higher payouts, then the sale amount might be higher, which ultimately leads to comparatively low sell generation.
In the above example, the affiliate earns $1.00 per click more in offer A compared to offer B. Although the revenue generated was the same but the click taken in offer B was a bit high.
You can now say that “EPC is a deciding factor for choosing the best affiliate offer.”
With the help of EPC you can easily find those offers which are converting better. But Only EPC is not only the key factor in deciding any affiliate campaign.
It also depends of your website niche type, target country, web traffic location, content and audience type, the promotional ways you opted and many more.
If you want to more about it you can buy our affiliate marketing EBook.
Earnings Per click Examples (Higher=Better)
Suppose you are a blogger and you are running a website like okeyravi.com. Now let’s suppose you want to promote a hosting offer. There are two affiliate network options you have.
Now if you compare the 3 month EPC of Namecheap and GoDaddy then you can see, GoDaddy EPC is almost triple. The report is triple for 7 days EPC also.
So, you can say GoDaddy has a very impressive EPC. For every 100 click affiliates earns $38.43 which is good. So, GoDaddy is a better option for you to promote
I hope now you understood the concept of EPC (Earnings per click) completely.