Tip for Beginners #06: Understand the importance of EPC PDF Print E-mail
Affiliate Marketing Tips - Affiliate Tips & Advice for Beginners
Tuesday, 02 May 2006

What is the importance of EPC and Payout Rank?

EPC and Payout Rank Explained

New terminology is inherent to the quickly evolving affiliate marketing industry. The EPC and Payout Rank can be added to the arsenal of affiliate marketing jargon.
This affiliate marketing tip aims at explaining you the meaning of EPC and Payout Rank, as well as indicate the importance for merchants and affiliates.


3-Month EPC: represents the sum of fees paid to publishers in the past three months divided by the total clicks over the same period. This means that you can read the average income which was generated by one click. Performics, like CJ, will multiply this figure by 100. The three month earnings per click will thus tell you the average earnings per 100 clicks.

7-Day EPC: Similar to the 3-Month EPC, the Seven Day Earnings per Click is the sum of commissions earned by a publisher in the past seven days, divided by the total amount of clicks (and then again multiplied with 100).

Payout Rank: Advertisers – as well as publishers – are compared with each other. A ranking is made and a classification is awarded. Advertisers will be ranked by commissions paid to publishers over the past month.

Why are EPC & Payout Rank important?

EPC is a powerful metric which you should use to your advantage. First of all EPC will indicate the successfulness of a merchant program. Obviously, you are looking for affiliate programs which convert. The EPC indicator is a good tool to assess this: the higher the EPC, the better performing your merchant is.
Secondly, you as an affiliate are impacted by your Payout Rank. Merchants often only look for high performing affiliates (the so called super affiliates). The Payout Rank is a very good indicator to evaluate this.

If you are in the top percentile of network performers, you will receive more offers, better commissions and better support from your merchant. Without any doubt, these factors will positively influence your success as an affiliate.

 






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