The gold standard performance statistic for affiliates is earnings per click.
Your average income for each unique click you send to an advertiser is the main performance metric. And if you disagree that this is the most important affiliate marketing metric, let me explain.
But first, pose a few important questions to yourself. Are you researching metrics? Do you understand the formula? Are you use it to subtly sway corporate choices?
You are losing money if you gave a negative response to any of the questions above. And if those arguments aren’t convincing enough, let’s go through a couple more reasons why this measure is important.
The most important metric for you is earnings per click.
The metric of earnings per click is neutral.
Affiliates want to maximize their profit at the end of the day. username=”Ezeeurl”]
No matter how high your conversion rate is, the statistic doesn’t care. It doesn’t care if you received an exclusive partner compensation or just a small amount of clicks. Based on past performance, Earnings per Click cuts through the noise and tells you the precise amount of money you can anticipate earning for each click you purchase. With that knowledge, all that is left for the affiliate to do to be profitable is to get their cost per click under their earnings per click.
Utilized in a paid supply side cost per click or cost per thousand impressions setting, the earnings per click metric’s complete potential is fully realized. You may immediately contrast this with the earnings per click determined by your tracking software if you can deduce a cost per click for each click you route to your paid adverts. You may calculate your net profit per click by deducting your cost per click from your earnings per click.
It can be calculated as follows: Net profit per click = revenue per click – cost per click.
This is vital. When it boils down to it, this is what affiliates really need to succeed. Set conversion rates aside. Never mind the click-through rates. Leave rewards out. You are making money if your click-through revenue exceeds your click-through expense. That’s all there is to it.
By default, the majority of supply-side advertising platforms will give you your cost per click or a method to figure it out for each ad. For instance, I was working as a high volume social media affiliate during my time in college. I was promoting clicks through a self-serve media buying platform that provided line-by-line reporting for each of my adverts and their corresponding cost per click. My tracking system provided earnings per click breakdowns by sub ID to align with this. This meant that I could directly calculate profit for each over any period as long as I entered the creative ID into a sub ID in the tracking URLs behind my ads. dividing tests in easy mode.
How to Calculate Clickthrough Rate
Earnings per click is computed by dividing the entire amount of money you have made during a certain period by the total number of clicks you have made during that same period. This provides you with an estimate of the earnings you may expect from each individual click you generate. In a cost per click setting, this information is priceless.
Three Tips for Pay-Per-Click Campaigns
1. Make wiser purchasing decisions. Consider a scenario in which a network approaches you with an offer similar to the one you are now running but with a bigger payment. A tempting offer, yes? Actually, this has no meaning at all. Undoubtedly, the compensation is bigger, but what if the conversion rate is significantly lower? By sticking with this new network, you can even be losing money. Earnings per click take on critical importance in this situation. You are now earning more money if your EPC is higher on this new network than it was on the previous one. The conversion rate is irrelevant. The payout is irrelevant.
2. Examine faster. Split-testing is made simple by using a single statistic as the performance baseline. You can now manage several networks or alternate links often while concentrating just on the click-through rates of those campaigns. Your most valuable resource in an industry that moves so quickly and fluidly is time. You can reclaim time spent on tiresome computations by calculating profits per click.
3. Feel more secure. Fraud is now and forever will be a nagging, annoying issue in the realm of performance marketing.
When you are relying on a single key measure that is derived from both your gross spend and earnings, it is simple to record and monitor patterns by hour, day, and month. Easy trend tracking produces blatant trend outliers. As a marketer, this enables you to concentrate your efforts on performance, which is of utmost importance.
When you are relying on a single key measure that is derived from both your gross spend and earnings, it is simple to record and monitor patterns by hour, day, and month. Easy trend tracking produces blatant trend outliers. As a marketer, this enables you to concentrate your efforts on performance, which is of utmost importance.
One last thought
Finding and evaluating offers takes a lot of time when operating an affiliate business. You need to maximize how you spend your time if your main objective is to maximize your profit. It’s simple to become buried in metrics and figures, and if you’re not spending enough time examining the appropriate things, you’re losing money.
A quick technique to make sure you’re producing money effectively is to concentrate on profits per click, despite the fact that it may appear like an overly basic answer.
