Hey everyone,
Math isn't my strongest suit but this post lays it out very nicely: http://stmforum.com/forum/showthread...urn+investment
And I get it and everything makes sense but I must admit I get confused when I see multiple different formulas for the same metric.
I've seen two different formulas for EPC:
EPC = CRV (as decimal) * LP CTR (as decimal) * Payout
and
EPC = Payout x CVR (as percent) / 100
============================
Same thing for CPC:
CPC = CPM / (CTR (as decimal) x 1000)
Note: I originally thought the CTR in the above formula was supposed to be percent but I just figured out it's supposed to be decimal. How do you know when to keep it as percent and when to convert it to decimal?
and
CPC = CPM / (CTR (as percent) x 10)
===========================
Profit has 3 formulas:
Profit = ( EPC - CPC ) x Spend / CPC
and
Profit = ROI x Spend /100
and
Profit = Revenue - Spend
=====================
Last but not least, ROI has:
ROI = ( EPC - CPC ) x 100 / CPC
and
ROI = Profit/Spend x 100
====================
I think at the end of the day, it all calculates the same (except EPC, one takes into account a landing page and the other doesn't). Is there a standard for affiliate marketing? Should I even be concerned with this?
Haha, I guess you weren't paying attention in Mrs. Wainright's Pre-Algebra class.
These are all the same thing, just as 5 cents is the same thing as a nickel which is the same thing as .05 bucks which is the same thing as 5% of a dollar.
To convert a decimal to a percent, multiply the decimal by 100, then add on the % symbol. An easy way to multiply a decimal by 100 is to move the decimal point two places to the right.
https://www.khanacademy.org/math/pre...-percents-ex-1
I did the calculations and yeah, they all come out the same. I think the EPC formulas are different from one another because one of them takes into account a landing page.