Effective Earnings per Click, or eEPC for short, is a helpful metric for understanding affiliate performance. Here’s how it is calculated:
(Total Sales ÷ Total clicks) = eEPC
Consider a simple example where two affiliates are selling a single product. The product sells for $100.
The effort's of each affiliate generated $1,000 in sales. For Affiliate A these sales were generated from 100 clicks. Affiliate B, on the other hand, generated these sales with 50 clicks. Let's look at the comparative eEPC:
Affiliate A's eEPC = ($1,000 / 100) = $10
Affiliate B's eEPC = ($1,000 / 50) = $20
Though Affiliate A drove more clicks, the effective Earnings per Click is higher for Affiliate B. This could demonstrate that Affiliate B's network is a better fit for the brand, or perhaps that they have a more eye-catching promotional style, or any number of things.
Once you understand the relative performance of your affiliates you can use that information to drive strategy and investment into your program.
Please note: The eEPC calculation when viewed in Refersion reports will reflect the eEPC for the specified time frame.