EPC (Earnings Per Click) is one of the simplest and most effective metrics for analyzing affiliate marketing performance. It gives you a clear picture of how profitable a specific offer is and how much revenue you generate from a single click.

EPC is especially useful for affiliate marketers who promote multiple offers and want to compare their performance. It also serves as an excellent benchmark alongside CPC (Cost Per Click), allowing you to easily ensure that your advertising costs do not exceed your earnings.

Average Order Value (AOV) shows how much a customer spends on average during their first purchase. It is calculated by dividing total revenue by the number of initial orders. AOV is a key e-commerce metric because it helps determine customer acquisition costs, marketing budgets, and affiliate commission levels, while also indicating the overall revenue potential of an offer.

Lifetime Value (LTV) – Meaning and Importance in Online Marketing

Customer Lifetime Value (LTV) shows how much revenue a customer generates on average over their entire relationship with your business. The LTV formula is: Average Order Value (AOV) × number of purchases per year × customer retention period.

LTV focuses on long-term revenue, not just the first purchase. It helps determine customer acquisition costs, marketing budgets, and affiliate commission levels. A higher LTV allows businesses to justify higher upfront advertising costs in exchange for greater total revenue over time.