There are tons of scams about making money online everywhere you look. But when it's free you know you've found something. The way I show you how to make money is exactly how I make money, and it may be simpler than you think. All you need is someone to point you to the resources that work and tell you what doesn't. Good luck to all of us.

Sunday, July 20, 2008

EPC, what it is, what it does, and why you should care

As I mentioned briefly before, EPC stands for Earnings per 100 Clicks. I'll try to explain it as simply as possible but it can be hard to understand. EPC is a stat listed on most individual affiliate programs, if not, it can be figured manually. Basically, it is conversion rate combined with commission in a certain way, to show you what you can expect to earn when a certain amount of people see your link. One thing that confused me, is I thought that they PAID me that amount for every 100 clicks, boy was I wrong. So don't get confused and think that, because thats not what it means.

So lets say a program gives a commission of 20$. Its Earnings per 100 Clicks is also 20$. That means on average, the people selling this product got 1 full sale for every 100 clicks. 1 sale in 100 clicks is 1% conversion rate. If you can remember that a product having the same EPC as its commmission means 1% conversion rate, your already doing good.

Lets say your still confused and you see some freaky product that gives 15$ commission, and the EPC is 1$. That is a 0.067% conversion rate. Terrible.

The math for figuring out conversion rate from just commission and EPC is this:
EPC/Commission = Conversion%. "EPC divided by Commission = Conversion%". So 20/20 = 1%. 20/5 = 0.25%.

To figure out EPC from Commission and Conversion, since some programs don't list EPC, you can find it out like:
Commission*Conversion%. "Commission multiplied by Conversion%". So a program that pays 20$ commission and has a conversion of 5%, has an EPC of 20*5, or 100$. A program like that would be great, if it exists. This formula for figuring out EPC when none is listed is VERY important. EPC is the main criteria for determining how much money that program is making others, and most likely how much it will make you.

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