Effective Earnings per Click, or eEPC for short, is a helpful metric for understanding how each affiliate is performing per 100 clicks. You will encounter this metric frequently when talking about affiliate marketing. Here’s how it is calculated:
($NetCommissionsEarned ÷ Total Clicks) x 100 = eEPC
Example: Each of your affiliates earn $10 for each sale through their affiliate link. Affiliate Wonder Woman sold 55 products from 100 clicks, and Affiliate Supermansold 65 products from 170 clicks. Both had 5 returns (refunds) during the same period of time.
$NetCommissionEarned: (55 – 5) x $10 = $500
Total Clicks: 100
eEPC: ($500 ÷ 100) x 100 = $500.00 eEPC
$NetCommissionEarned: (65 – 5) x $10 = $600
Total Clicks: 170
eEPC: ($600 ÷ 170) x 100= $352.94 eEPC
Once you’ve done the math, you can see at a glance that though Superman generated more sales, Wonder Woman has a higher eEPC and is overall more efficient. This is great information since you now know you should help Superman optimize his methods to increase his eEPC.
Not only does the eEPC show you which affiliates are currently more valuable, but also the ones that have the most potential. You can think about setting an eEPC threshold and flagging affiliates that fall under it. Then you’ll have a prioritized list of who to optimize to increase your affiliate marketing revenues.