What is EPC in affiliate marketing?

In fact, many new affiliate marketers aren't even aware of EPC, what it is, and how to calculate it; however, they know this popular marketing term: "Cost per click" (CPC). Leaving them to myopically focus on finding the lowest CPC without looking too much into how much those clicks are actually earning them at the end of the day.

This is actually counterintuitive because once you know your EPC, then the CPC is actually irrelevant. In other words, as long as you are always earning more than you spend, you'll be profitable.

To calculate EPC, the total amount of commissions earned by an affiliate is divided by the total number of clicks generated by the affiliate's promotional efforts. EPC = the total amount of commissions you earn divided by the number of clicks your affiliate links had.

For example, let's say you were running ads for an affiliate product. Your total profit from the campaign was $100, and all of that revenue came from 50 clicks on your affiliate link. That would mean your EPC is calculated by $100 (your profit) divided by 50 (your total clicks) for a total of $2.

A simple rule of thumb is that a high EPC indicates that the affiliate program is likely to be profitable, while a low EPC may indicate that the program is less profitable.

For affiliate marketers, understanding EPC can help them to optimize their promotional efforts by identifying the most effective campaigns and channels. By focusing their efforts on programs with high EPC, affiliates can maximize their earnings and build sustainable revenue streams.