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Epc (4)

07-10-2021 01:30 AM #1 nguyengaren1234 (Member)
Epc

Hi,
Can someone please clarify if EPC is based on revenue or profit?

Provided that it's based on revenue, then higher EPC doesn't necessarily indicate higher profit, correct?

Then how to estimate the profitability of an offer properly? Is there a formula using the data that networks provide?

Thanks!

07-10-2021 10:59 AM #2 stickupkid (Senior Moderator)

If you put your cpc (cost) next to epc (often revenue based indeed) you can see the margin right?

Example - cpc on FB is 0,21ct and Epc offer is 0,41ct it means 0,20ct profit per conversion.

07-19-2021 09:59 PM #3 matuloo (Legendary Moderator)

It's revenue based as far as I know, so yes, it doesn't necessarily tell you much about the profit itself.

Then how to estimate the profitability of an offer properly? Is there a formula using the data that networks provide?
This comes down to how much experience you have with a particular vertical or niche.

For example in my case, I know what the prices are for dating traffic and I know how well my LPs perform, so I know how much a click to the offer would cost me... roughly of course. So based on the EPC I can tell if the offer has a chance to work with my current funnels or not. Again, just roughly because there are other variables that come into play.

The EPCs you get from networks can be very confusing to be honest, as it represents an average value that is a result of a big traffic mix. There might be pops, push, google, facebook and what not in the mix, and the actual numbers can be very different for each of them.

To me, overall volume/revenue is often a better indicator... because when lots of affiliates drive good volume to an offer it likely works for more of them.

07-19-2021 11:15 PM #4 jaybot (Veteran Member)

This depends on what EPC you are looking at. If it’s network EPC, this doesn’t tell you much, as @matuloo pointed out. Since you don’t really know what your network CPC is without checking your stats.

If checking your own stats in your tracker, or on your traffic source, it’s much easier. If EPC is higher than CPC you are making profit.

How to get EPC from your traffic source is easy (if going with CPC bids like push or Native or FB): simply divide revenue by Traffic source clicks. That’s your EPC. If it’s higher than your traffic source CPC. You have profit.

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