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  1. #1
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    Relative EPC
    The Home Depot thread speculates that Home Depot rejects sites based on their EPC.

    I find this problematic as an affiliate's EPC is often the result of the their merchants. Since I have low EPC merchants in my profile, I have a low EPC.

    The "relative earnings" of an affiliate would be a much more interesting metric than pure EPC. Relative earnings is real earnings divided by expected earnings. To get expected earnings, you simply multiply (merchant by merchant) the affiliate hits by the merchant's EPC.

    You then divide the affiliate's real earnings by their expected earnings. If the number is greater than 1, the affiliate is beating the market. If the number is less than 1, they are dragging down the market.

    Personally, I wish CJ had a report that gave us our expected earnings. It is a bear to figure out by hand.

    Anyway, an affiliate's EPC really is nothing more than a reflection of the merchants they promote. If a merchant is rejecting affiliates based on this metric, they are silly.

  2. #2
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Quote Originally Posted by yintercept
    Anyway, an affiliate's EPC really is nothing more than a reflection of the merchants they promote. If a merchant is rejecting affiliates based on this metric, they are silly.
    It is both a reflection of who they promote and how they promote them. Coupon sites are closer to the "buy", they generally have higher EPCs. Email tradiotionally has low EPCs. If a merchant pays a high comm rate or amount, affs might be willing to push hard into peripheral areas to find additional sales - which drives down their EPC. So in this case, HD is avoiding hungry, agressive (yet ethical) affiliates. BHO / loyaltyware has phenominally high EPCs, so using EPC as a criteria will also favor those who cheat. As an affiliate, I prefer at least moderate volume - I have the ability to review 1,000 keywords in ppc and only use the top 10 - low volume, high EPC. Or I could use the top 200. Or I could use all 1,000. If I were 3 different affiliates (split personality disorder), would you recruit me on EPC and get the low volume, high EPC guy?

    Summarizing, EPC isn't the tell-all metric that some people think it is. Not to measure affiliates -and- not to measure merchant's programs. It's not a horrible general metric, but to use it, you must understand what influences it and you must put those other things into context, like volume and methods.

    Often, a low EPC affiliate is a much better acquisition that a high EPC affiliate. Sometimes, ther reverse can be true.

    EPC is no measure of an affiliates suitability and if they are using it as a screening tool, they don't understand what they're doing - and they are being silly and foolish!

  3. #3
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    Anyway, an affiliate's EPC really is nothing more than a reflection of the merchants they promote. If a merchant is rejecting affiliates based on this metric, they are silly.
    It has a lot to do with the affiliate and how targeted the traffic is but does boil down to whether or not the site can convert. There are merchants for which I'm way above the EPC and others where I'm well below. Changes on my end definitely have an effect on that but sometimes no mater what you do ya just can't get people to buy.

    An affiliate with lots of impressions and clicks but a low EPC can be a bargain compared to buying any kind of media placements from networks or site buys. IF ya don't count view though conversions when tracking and evaluating performance most media buys that just run standard banners look like crap and dont' come anywhere near the performance of any kind of paid search and nowhere close to affiliate programs.

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