You may have heard of the idea of a CTR, or click through rate. However, do you know what is a CPC? If you are not familiar with it, a CPC is an average cost per click. How does it work? It is very simple. Let’s say you want to sell a particular kind of mouse pad to your target market, and you want to have a sales page for it. The way you calculate a CPC is to give a special offer to your customers, and then tell them what price they should pay for the mouse pad in order to get the special deal.
They should pay $80, or whatever average price for the product, and you will get a click. Another alternative would be to set a particular price, and then look up your “average price” to see if people are actually paying more than that. If they are, you could take that money and give it to your website owners. It’s also important to know that it does not necessarily mean people clicked on the link to buy your product. You also have to calculate how many people actually bought your product after the click-through, and this is called the click through rate.
A CTR is often very good for your affiliate marketing as well. The higher your CTR, the more people that are clicking on your links, and therefore the more sales you will make. And when you calculate the CPC, you are giving your potential customers a better understanding of what you are offering, so they will be more likely to click through.