EPC - what is it and why does it matter?

What is EPC?

EPC stands for Earnings Per Click and shows how much an affiliate earns on average each time someone clicks on their affiliate link. It is a value that connects revenue with traffic and gives a quick picture of how profitable a campaign, program or specific link is.

It is an incredibly useful metric because it combines both traffic quality and conversion rate into a single number.

But remember that it measures and shows what it has looked like historically, and is not a guarantee of future revenue. And that doesn't mean that the advertiser pays per click.

How is EPC calculated?

The formula is simple:

EPC = Total revenue (commission) / Total number of clicks

Example:

• You have earned 5,000 SEK in commission from an affiliate campaign.
• You have received 1,000 clicks on your affiliate links.

Then your EPC will be:

5000 / 1000 = 5.00 SEK per click

Each click is therefore worth an average of 5 SEK.

When we report historical EPC, it means that we show what it has looked like in the past, with commission per click. It is not a guarantee that you will have the same EPC in the future and it does not mean that you will get paid per click, but is only an indication of how it has looked historically.

Why is EPC important?

EPC is important for several reasons:

1. Measures profitability at the traffic level
   Regardless of how much traffic you generate, EPC shows how well your traffic actually performs. It helps you understand whether it is worth sending more traffic to a certain program or whether you should prioritize other partnerships.
2. Helps with optimization
   By comparing EPC between different advertisers, products or campaigns, you can quickly see what works best and optimize your strategy accordingly.
3. Basis for investments
   If you buy traffic (e.g. via advertising), your EPC must be higher than your cost per click (CPC) for it to be profitable. EPC is thus a direct indicator of whether your traffic acquisition is financially sustainable.
4. Valid for advertisers too
   Advertisers also look at EPC – not just affiliates. A high EPC means that the program is attractive to partners, which can lead to more publishers and greater reach.

Keep in mind that EPC can vary

It is important to remember that EPC is affected by several factors:

• Traffic quality (how interested visitors are)
• Seasonal variations (holidays, promotions)
• Product price and attractiveness
• Site conversion rate
• A program with a high EPC during Black Friday may not necessarily perform as well in January.