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  1. #1
    Newbie
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    May 20th, 2009
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    11
    Do Affiliate Networks Pad their EPC figures?
    Hi everyone,

    I'm a newbie, and have yet to begin my first campaign. I'm reviewing various offers, trying to decide which would be the best to start with. I'm using EPC as a basis to form my decision.

    For example, let's say that I'm looking at an offer for Ringtones (I'm only using this as an example), and the Network is showing/advertising the network EPC to be $.70, and when I do a keyword analysis on Google, I find out that I can get ad positions 4-6 for $.35. So, as long as I can get some clicks with that position, then I might be able to make some money, right? It looks like a 100% ROI at first glance.

    But, when I go a different calculation route: I take the (Payout) X (My Landing Page Conversion Rate) X (Advertiser Landing Page Conversion Rate) = Break Even EPC

    Let's say the Payout = $3.00, MyLandingPageConversionRate = 50%, and the Advertiser/OfferConversionRate = 8%

    So, my EPCbreakeven should = $3.00 x 0.50 x 0.08 = $0.12

    This last calculation usually is nowhere near the Affiliate Network's advertised EPC!

    So, my question is...are the Affiliate Networks PADDING their EPC figures? Are their EPC figures NOT to be believed?

    If I use the latter calculation method, I usually end up just breaking even, or losing money, and it makes me wonder how anyone makes money in this business!

    Please advise me on this?

  2. #2
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    2,420
    >>are the Affiliate Networks PADDING their EPC figures? Are their EPC figures NOT to be believed?

    PADDING can be done by a merchant or OPM.
    I would not blame it on the network. imho

  3. #3
    Newbie
    Join Date
    May 20th, 2009
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    11
    Question So...
    So, in your experience, do you think most EPC figures shown on the Networks are unreliable, pretty accurate, accurate, or what? Regardless of who puts up the numbers.

    I'm looking for some guidance here...

  4. #4

  5. #5
    Newbie
    Join Date
    May 20th, 2009
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    11
    Thanks MCT ! That last link helps a lot!

  6. #6
    OPM and Moderator Chuck Hamrick's Avatar
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    April 5th, 2005
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    Park City Utah
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    It is all relative and two networks may not calculate EPC the same. If you look at all programs in the same network then it can be relative. It has been purported that EPC was created to shield high return rates. Look at shoes which can average a 50% return rate.

    So in comparison look at Yahoo on CJ and you will see a low EPC but that is for 10 programs rolled up into a mega account. Plus, they have 1000's of affiliates which dilute the numbers. Amazon has one of the largest affiliate programs and doesn't use EPC but has one of the highest site conversion of 17-18%. They set a session cookie so you have to make that sale with one shot and no return sales. EPC would not look good for that.

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