Commission Junctions EPC Demystified?

I've been doing this about a year, and never did quite get CJ's EPC. Earning Per Click?? NO F---in way it is generating $230 per click! (I would think to my self)

Well turns out that is earnings per 100 clicks (or so I was told at Affiliate Summit).
It kinda makes sense in the sick twisted way CPM makes sense.
CPM (Cost Per 1000 Hits -- 1000 = Roman Numberal M)
EPC (Earnings per 100 -- 100 = Roman Numberal C)

So.. EPL = Earnings Per 50? LMAO

Ok so anyways, this is useful in setting your starting PPC. (Price Per Click -- Normally Pay Per Click... but w/e)

Lets say a program on CJ has earnings of $235 EPC.
This would mean they make 2.35 per click on average.

Say the payout of the offer is $55.

We now know how to get the conversion rate.

(If my math/logic is wrong tell me)

100 Hits Results in $235 in sales
$235 / 55 = 4.27
Which means 100 Hits Resulted in a 4.27% conversion rate (sounds about right...)
Lets cut that in half. (cuz I think conversion rates and things like that are ALWAYS inflated by merchants -- and it helps boost profits for me by giving me a different goal to reach for)

So now I have my conversion rate of 2.135%
Multiply That by the Earning Per Action (in this case $55)
$55 * 2.135% = $1.17425 (pretty decent starting price....)
Now I cut it in half
$0.587125

My starting bid for this offer would be around 60 cents.
And then I would adjust up or down once I had my own statistics.

Now an easy formula.

EPC = Earning Per 100
CPA = Cost Per Action
PPC = Starting Pay Per Click (Adjust later)

PPC = EPC/CPA/2/100*CPA/2

And if you play around with the math you can drop out the CPA

PPC = EPC / 400

I'll be revisiting this since it looks too simple.

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