When a lot of webmasters talk about conversion rates, in most cases, they are talking about the number of sales or leads, they generally make per click. And partly why webmasters talk about conversions a lot is because it plays a cruel factor in trying to maximize profits, especially if they are into CPA (Cost per Action) marketing or affiliate marketing in general.
If you have ever been accepted into any affiliate network, you should see that they give you an accurate ratio of how many clicks there are before a sale or a lead (depends on the offer) – that is generally called the conversion ratio.
Although it is often times good to try and improve your conversions, the biggest thing, I believe a lot of webmasters get confused about is EPC from conversions, and which to listen to when deciding which campaign is the most profitable.
If you are trying to maximize your profits, no doubt do you want to follow the campaign with the higher EPC rates, but note that in most affiliate networks, before you even try promoting any campaign, they usually already display a EPC rating. Basically that is the average EPC that publishers are getting when trying to promote a certain campaign. You can use that information to help test which campaigns profits best for you, but remember, not everything works even if a campaign may claim to have a high average EPC. You must experiment because for some it may be profitable, for others, it may be not so profitable. My best advice is to test which campaigns have the highest EPC for your websites personally and follow your own rational decisions.
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Lets take a little bit of time and learn what EPC is and why you want to follow EPC over conversions when trying to maximize your profits.
What does EPC mean?
Generally, when you see EPC, it means Earnings per Click. Why this information is valuable is because it gives you an accurate detailed statistic on which campaigns are performing the best per click. Reason why I say EPC rates over conversion ratios any day is because if you are trying to maximize your profits, the only statistic you want to be worried about is the EPC. The reason why the conversion ratio statistic is such a vague statistic to follow is because it only takes into consideration how many leads or sales you make. While on the other hand, EPC takes into consideration how much you make and overall averages it out will all the clicks delivered. When trying to maximize your profits and trying to follow the EPC rating, your only goal is to try and improve your EPC rating and nothing else. Don’t get confused between the two because if you are looking to improve your earnings, EPC is your ideal statistic you want to improve.
All in all, I hope this post has cleared up a lot of confusion about EPC and conversion ratios for affiliate marketers because for me, I didn’t find out the difference between the two and make use of the statistic until I was already too late and was losing money by following the wrong statistic!
