CVR, AOV, EPC, EPL - Acronyms - What They Mean, Why They're Important
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Cody Bramlett used to own a Kettlebell gym in San Diego, where he helped train people like you who want to get in shape, build strength, increase their self-confidence, and simply feel better. Today he tries to help a lot more people all over the world. That is why he created Science Natural Supplements to help people become pain-free, lose weight and feel great about themselves. He is here to help you. Here to help you make money with Huge and High converting offers, but on a more personal note, he wants to help you succeed. He is all about helping affiliates and business owners just like you make more money, have more success, and help more people.
This is an edited version of the audio interview linked above.
Dee Braun: Hi Cody!
Cody Bramlett: Hey Dee, how are you today?
Dee Braun: I am dandy. Thank you. How are you?
Cody Bramlett: I am great. Super excited to be chatting with you again.
Dee Braun: You lucky dog. Okay. So we are going to be talking about all of the acronyms that we use in this space and there’s a lot of them. So first off, why is it a big deal? Why should we know this?
Cody Bramlett: Well, I think it’s important to know the acronyms because if not, you sound like a complete newbie. Like when you ask what a metric or an abbreviation means the person on the other end may or may not want to talk to you much anymore. And secondly, when you start seeing spreadsheets, we start seeing data. When you start going to conferences, you’re going to be throwing out three and two letter words back and forth. You’ll now start to understand what they are because it’s easier to say AOV than average order value.
Dee Braun: True. So basically every, every space, every profession has a language, right? I mean it really does. If you’re a doctor, you have a different language than if you’re a lawyer than if you’re a civil engineer or mechanical engineer. Well, our space also has a language and this is part of that. So what do you think? Let’s, let’s go over the top few first. What do you think are the most important ones?
Cody Bramlett: Oh goodness. So AOV, we’ll start with that one. That’s average order value. That’s just a simple metric that allows you to know that if you get a thousand orders, what is the average? So how do you calculate that? You take the sales of the thousand orders that happen or whichever number you need and divide it by the number of orders that happens. And that gives you your average order value.
Dee Braun: Okay. And how would we use AOV? Why is that an important metric? I can tell you from a partner standpoint it’s important because if you have an informational product and your average order value is $79 and you’re paying a CPA of $30, I’m going to call you on it because I know dang good and well, your cost of goods is not $49.
Cody Bramlett: Yeah, definitely. And for us we use our average order value to be able to determine, you know, how much we’re making per order. And then from there we pull out our average cost of goods, our average tax, or average everything down, leaving us with what’s left, we can actually give out as our commission.
Dee Braun: Right. I mean it’s really, it’s one of the most important metrics for figuring out what you can pay your partners.
Cody Bramlett: Definitely without that too, you just don’t know anything. You’re clueless. It’s one of the most basic kind of numbers too.
Dee Braun: Okay. What’s the next one?
Cody Bramlett: I mean, let’s talk about how we’re paid. You know, a CPA, that’s the first one. So CPA is a, you know, cost per action or cost per acquisition. It’s basically a how much you are paying for each individual front end order that happens. Every single person who converts … if she sends to my offer and 50 people buy, I’m going to pay her the commission for [each of] those 50 people. Right? Okay. Very simple and straightforward.
Dee Braun: Okay. CPL
Cody Bramlett: Cost per lead, that’s another way. And this is much more Dee and Sherpa’s experience than my own. But you’re basically paying for every single person who opts in. Biotrust has been big on this one. Any time you see those ebook offers where you put, put an email in and hit go, a lot of those are cost per leads. So you really have to know your metrics, and we talked about this on another call, Dee and I did about how much when you’re actually making profit so that way you can actually determine what each individual lead is worth from each affiliate. So it’s quite a more complex thing. I’m definitely on the more, you know, higher skill level.
Dee Braun: Right? And a lead can be like we send them to a quiz. So when they input their email, that is a lead and our base is $2 per lead. So if you send a thousand leads, it’s $2,000. Okay. Rev share, I know it’s not an acronym, but a lot of people don’t know what rev share means.
Cody Bramlett: Definitely rev share is used mostly by ClickBank. This is where it was made most popular, at least in our space. So basically it’s just saying I’m going to give a percentage of the sale to you as commission. Now just be aware, be aware that on ClickBank that if you put in 50% it’s not a literal 50% of the actual sale because they have things they take out first before they actually give that 50%. So just understand that you really gotta look at all the different fees and costs involved in that, especially using a third party platform to get the number you actually want to give. Because if truly want to get 50% you might be having to give like 55 or 60% more for the affiliate to actually get 50% of that sale dollar.
Dee Braun: Gotcha. Okay. How about CVR?
Cody Bramlett: CVR? I don’t know that one actually. I was thinking about asking you that one day.
Dee Braun: That’s a conversion rate.
Cody Bramlett: Oh yes. I just put conversion percentage. That’s my favorite little way of putting it. Conversion rate is very important because you want to be able to know how many people who land on your page will convert. We want to try to get that average across the board. Like for my turmeric buy-one-get-three-page. Majority of people it’s about 3.8% conversion rate right now. We want to make sure you know your conversion rate cause then you can factor in how much money someone’s going to get paid per hundred or thousand clicks they send. And that way they can kind of judge how much they want to send your offer or how much are willing to test your offer.
Dee Braun: Okay. EPC.
Cody Bramlett: Earning per click, that’s a metric that is highly misused by a lot of people and sometimes worthless, but also sometimes relevant. So whenever I’m sharing stats with any affiliate or looking at stuff for myself, for the affiliates who send traffic to us, it’s really trying to just collect as much information as possible. So you basically take how much commission you paid the affiliate. So let’s say Dee dropped and she made $1,000 and sent me a thousand clicks, that means she made a dollar per click. Earnings per click. So it’s just the commission divided by how many clicks were sent. And then just make sure that you specify when you are talking to someone like is it unique clicks? Is it clicks on the CRM, is it clicks from the email, clicks from Google analytics because there’s many ways to get clicks. So you want to make sure that you are explaining the correct ones. So everyone’s on the same page.
Dee Braun: Okay. EPL, which is very similar.
Cody Bramlett: Yeah. Earning per lead. So it’d be the same as if they opted in, right, Dee?
Dee Braun: Yep.
Cody Bramlett: Yeah, I haven’t seen that one too many times.
Dee Braun: We actually give it out because we have a CPL offer. Right. So it’s just, it’s just another way to say the same thing basically. Okay. CTR.
Cody Bramlett: A click through rate or click through ratio. And that’s just helping you learn how many people actually clicked through from the email. Is it per impressions? The average number?
Dee Braun: It can be, you know what? It can, when you think about it, it can be per open, it could be per unique open. If it’s an email. It can be via impressions to a page versus unique. I mean you could really use, you could kind of twist that quite a few different ways.
Cody Bramlett: It’s one of those ones that’s a hard metric to reach out and share. I think that one is more useful to on on your side when you’re trying to figure out your email list and how it’s operating and what’s doing and what might, what might work better, what type of a offer might work better. It’s definitely more of an internalized metric in my opinion.
Dee Braun: How about TOS?
Cody Bramlett: I don’t know that one. Would love for you to share if you do.
Dee Braun: That is terms of service, which you actually pretty much need if you’re going to have a partner program, terms of service is TOS.
Dee Braun: Okay. C O G… Cogs. What’s your cogs.
Cody Bramlett: The cost of goods. It, it can be broken out many different ways. Cost of goods for me, I like to break it down on just the actual physical product. It could also include shipping. Could also include sales tax. Those are all hard costs you don’t have to keep. When I do my metrics, I have to break them out because it lets you see more statistics and changes to things. So that way I can see if my shipping rates going higher or lower. They might tell you if more people are buying larger bottle volumes or less bottle volumes. So it helps you kind of divide it and understand everything. So I prefer to have that on the actual physical product.
Dee Braun: Okay. here’s a new one that I actually haven’t seen, but it actually, it does apply to us, which is CAC, which is customer acquisition cost, which would kind of be a COG when you think about it except for customer acquisition. And this would come into play I would think a lot with like media buys.
Cody Bramlett: Yeah, exactly. I will say this, this is just like a CPA or rev share. It’s very similar but it might include other pieces involved in that. You know, if you build out a giant system that costs you $50,000 and it costs you $50 per customer, you have to kind of calculate everything in to make your customer acquisition costs, I would assume. Definitely, definitely just another way to split hair on that one between CPA, CAC or Revshare.
Dee Braun: You can also just for, just so y’all know, you can do CPC which is cost per click. CPM cost per thousand. And I just learned this because I’m me and it takes me awhile. But the reason it’s an M is because it’s for Mille, which is a French word for thousand.
Cody Bramlett: That makes so much more sense.
Dee Braun: Cause I’m like, why isn’t it costs per million? That’s stupid, right? So you can do CPO cost per order, CPS cost per sale. So just so you know, you’re aware of the, of those, I don’t see those as often in our space, but they definitely could apply. So what about, what’s B2B?
Cody Bramlett: B2B is business to business.
Dee Braun: So if I am a copywriter, I am a B2B business. Correct. Because I’m offering my services to other businesses.
Cody Bramlett: That’d be correct. Where most of us are. Most of us actually are in this, in the business of business to business. I mean Dee and I are two different businesses. We work together, we’re business to business and the aspect of how I pay her for leads she sends me or customers she sends me and she pays me for customers and leads I send her. So technically we are in that B2B space, but we’re also in the B2C, which is business to customer. Because at the end of the day we’re trying to get our goods to the customers so we can make money and make them happy and share with them other great things.
Dee Braun: Right. All right. PPC.
Cody Bramlett: PPC. That’s something I’m, I have not used a lot.
Dee Braun: Pay-Per-Click. Google ad words.
Cody Bramlett: Yes. Yes. That’s why I haven’t used it. I’m not a Google person at all.
Dee Braun: I’m not sure how Facebook media buys work. I’m sure they charge you per click, but they probably have other stuff. They probably charge for impressions and all kinds of stuff.
Cody Bramlett: Yeah. There’s lots of different variations on how they do things there. That’s why I just hire people that can handle Facebook cause that’s not me.
Dee Braun: Then there’s always SEO, which is search engine optimization. SEM, search engine marketing. I won’t say that it’s not things we do in this space. But it’s definitely not what it used to be and it’s not as big of a deal for direct response email as it would be for like a normal affiliate program that caters to mom and pops and influencers, bloggers, podcasters, coupon sites, et cetera. They’re much more interested in SEO and SEM than we are.
Cody Bramlett: Exactly. It’s the bang for your buck factor. We have some more bang for your buck when we do these list shares. There’s so much more profit and sales available in that than there is to spend time trying to tweak a few words and SEO to get a few extra clicks.
Dee Braun: Okay. LTV. This is a really important one.
Dee Braun: Ah, lifetime value. I know Dee and Sherpa’s got this down hardcore, but being able to figure this out guys, it’s one of those things you have to know and so we’re spending just tons of time on our side trying to figure out how to get the lifetime value of the customer and also understand that you can look at it in so many different ways. You know, you could look at the lifetime value of a customer complete lifetime if you’re really good and you can metric back who actually purchases all the third party things. You could add that in on your email list. You could go as far as you want, trying to take that revenue and putting it back on an average for each customer that comes in. There’s, there’s many, many ways to kind of look at it, but you want to really know how much someone’s going to buy and how long their life span is cause then you’ll be able to start doing things like the CPLs cause you know your metrics a lot more.
Dee Braun: Definitely okay, ROAS.
Cody Bramlett: Return on advertising spending.
Dee Braun: Yes. Why is that important?
Cody Bramlett: You’ve got to know when you’re going to break even and what you spent.
Dee Braun: And there’s different levels of ROAS. There’s immediate and then there’s time increments, right? Five day, 15 day, 20 day, 30 days, 60 90 180. So if you map it out, you know your numbers, you can figure out where you break even, which tells you what the minimum immediate ROAS is, right? Like I’m going to break even by day 30 and if I have a 50% or a 45% immediate ROAS, I can be pretty darn sure I will break even by day 30. And the only way you figure that is to really dig into numbers and record them and keep recording them and watch your trends and know your numbers. I mean, it’s just another piece of it.
Cody Bramlett: Become friends with Excel and Google sheets, that’s all I can tell people. If you don’t know what you’re doing, Google it and read and watch videos because there’s so many things you can do on there that’ll allow all the stuff to be saved, added together and calculated and make life so much easier. And again, don’t know, seriously, just ask the question on YouTube and I found so many ways to understand how to calculate this stuff and keep it safe on spreadsheets. You can keep adding to it, you know, every week, every month, however often you do your, your metrics.
Dee Braun: Okay. ROI.
Cody Bramlett: It’s return on investment. Very similar thing. You want to make sure that you make back the money you spent.
Dee Braun: I always look at ROI as more of a big picture. Pull in all the pieces. Like ROI to me would be including the partner stuff, the media buy stuff – just all of it. Like a bigger picture. It doesn’t have to be, but that’s how I look at it.
Cody Bramlett: No, you’re 100% right. It’s definitely the bigger picture all included. So knowing how much it cost to build the webpage and knowing how much it costs to set up your tax system, knowing how much it costs to you know, do your server or pay for the Maropost account. Having all that included in, to be able to know that you’re making that all back. Whereas ROAS is strictly kind of what you’re paying out for the CPA or the CPL and when you’re gonna make that back. So it’s not really calculating those extra pieces.
Dee Braun: Okay. How about here’s one and lots of people don’t know this. I did not. So don’t feel like an idiot if you don’t know this. I learned it because Jeff told me he wanted a report and I panicked and I’m like, I did Google it to figure out what the hell he was talking about. So KPI. Every affiliate manager and program owner needs to know what this is. They need to implement it and they need to report on it weekly. That’s my opinion.
Cody Bramlett: Well since it’s so important and you’re an affiliate manager, why don’t you walk us through Dee and tell us how you think everyone should be doing this? Because we want everyone to do what Dee does, period.
Dee Braun: Not necessarily. KPI is a key performance indicator and it’s basically a set of goals and you measure those goals weekly to see where you’re at with, hold on. I’m going to, I’m going to bring up my KPI report so that I can tell you exactly what I do, what we measure. Okay. Keep in mind that we have a CPL offer our offers or CPL. Right now my KPI goals, I have an inbound lead goal. I have a percentage of active affiliates mailing goal. I have a minimum number of partners mailing goal. I have a revenue goal and I have an external GM revenue goal. And external GM for us is my revenue goal is the revenue our offers make with partner traffic. External revenue is how much I make off of Cody and other partners where we promote their offers.
Dee Braun: So we track this every single week and every month. So we track it every week. But my goals are monthly and I keep track how many active affiliates I have. How many affiliates do I have, period. How many leads have partners brought in? What is their lifetime, ROAS. What is the total revenue for that month and previous months, the whole nine yards. But these, this quantifies what every program owner wants an affiliate manager to do, which is increase revenue. I mean, Jeff will consistently go, I’ll come up with some harebrained idea and he’ll just go, is it revenue first, right? Revenue first. And it doesn’t mean that we ignore all of the other stuff. It means revenue first is absolutely my first priority, right? So it gives me something to shoot for and it shows me where the weaknesses are. It also gives me talking points for weekly meetings with my boss.
Dee Braun: You know we, we had a meeting yesterday and our ROAS is dipping a little bit and he’s like, why do you think that is? And I said, I think we need new creative. It’s just the offer’s been out there for awhile. We need to refresh them.
Cody Bramlett: Dee, I’m going to hold you to this right now because everyone’s going to ask and I know they’re going to ask you for this. Can you give us a mock KPI report so everyone will know what to do?
Dee Braun: Oh yeah. I made a template of what I do. So KPIs are a big deal. And, and we really need to, you know, I think they’re a big deal. I don’t like the pressure they put on me because I’m one of those people that it’s like if you tell me I have to hit a goal and I’m like, if I don’t hit it, am I going to get fired? I’m just one of those people. So I put way more pressure on myself than I probably should. So, but another one that is different but similar is OKR. Now I don’t have to work with this directly, but my team does. So I just wanted to touch on it. It’s objectives and key results and it’s a goal system. It’s a simple tool. I’m reading by the way, just so y’all know. It’s a simple tool to create alignment and engagement around measurable goals. Okrs are frequently set, tracked and reevaluated usually quarterly. It’s basically to get everybody on the same page, going the same direction with clear priorities in a constant and consistent rhythm. So if you want to know a bit more about OKR, Google is your friend, so I just wanted to mention OKR.
Cody Bramlett: Very cool. Very cool.
Dee Braun: Let’s see. Okay. PPM, which seems to be just us. Actually I think there’s a couple other partners who do it as well, but, but it’s, it’s a lot of it just us. PPM is a really big deal. Okay. It’s just a big deal. It’s profit per thousand and we use it to measure the success in dollars of an email send. So if I want to promote Cody’s turmeric, I tell Cody, Cody, we got to get it $15 to $20 PPM. And so most of our partners ask me, Cody will ask me too, where are we sitting with PPM? Because they know that’s how we measure and the formula is delivered divided by a thousand divided into revenue. [Revenue / (Delivered / 1000)] So it is literally how much you’re delivering. Each delivered email, each, you know, thousand group of delivered email made you how much money. So profit per thousand at $20 that’s a really good PPM. We’ve hit 30 40 50 before, but 20 is our sweet spot that we want to get to. And it, it really just, making that switch kind of revolutionized how we decided or how we determined if an offer was successful. EPC like Cody mentioned, is not always accurate. EPL is not always accurate. They’re very misleading. And we’re in the email business, right, so how much are the emails making you? That’s what we should be measuring.
Cody Bramlett: Yeah, that’s phenomenal. And that’s a really easy way to look at it. Especially as a list grows. I know some people will say, Oh, I typically make $500 an email. And so my goal is 500 but if you added 3000 people to your list, that month, your goal should be changing.
Dee Braun: One reason EPC is not a really good metric is there are people who open up an email five times and click 12. Right?
Cody Bramlett: And it also changes depending on the offer. For example, my turmeric buy one get three free, it’s not a curiosity click. So it’s going to have a lower amount of clicks because people that click are serious buyers when it comes to that. And compared to like a, what’s the magic sauce that’ll change your life, click here and discover it.
Dee Braun: So I mean you may have an amazing EPC but your PPM may suck. Right? It’s a really, really good way to measure exactly what your list is doing for an offer and it makes sense. We’re in email marketing measure by email. I mean to me it’s just logical.
Cody Bramlett: Yeah, entirely. Cause everything’s different. Everything changes from subject line to copy to the actual line they’re asking to click on. And then the sales page, you know there’s 50,000 different ways to make that all change. So this is the way you guys look at it is one of the best ways of looking at something. Cause it just looks at the overall giant list as a whole, as it grows and changes in size and gives you a metric. It’s, it’s solid.
Dee Braun: So what, what ones did we miss? Did we miss any?
Cody Bramlett: Probably hundreds. But who knows, there’s so many acronyms out there that it could be, but I think those ones we went over are some of the most important. I would say maybe like hop link is, you know, a weird one on Clickbank that’s unique to them. That’s just kind of like, you know, your unique link. Maybe sub ID, that’d be a huge one. So a lot of tracking software, you know, has the actual link and then it’ll have your account number or affiliate ID and then there you have sub ids so you can track and divide your list out and do whatever you need to do to break down your lists. So being able to know that a sub ID can be just any chain of letters or numbers is useful I guess.
Dee Braun: Definitely. Definitely. Gosh, I’m trying to think of any others. I know there’s tons, but I think those are the big huge ones.
Cody Bramlett: Yeah, definitely. If you know, if you know those, you’re, you’re more than halfway there because Dee mentioned five or six that I didn’t even know. So,
Dee Braun: Gosh, Hey, maybe we’re done early, Cody.
Cody Bramlett: Huh? Love it. I will say this. Don’t be afraid to ask too, especially in the Facebook groups especially any new partners that you’re learning from or mentoring from. You know, if you don’t know, you don’t know. If someone really is going to write you off for not knowing something that’s a bummer on their, on their half.
Dee Braun: Well, just remember they weren’t born an expert either. You know, they did not come out of the womb going, I’m going to have great CTRs. Bullshit.
Cody Bramlett: It took me a year to know what a hop link was so don’t, don’t worry about it.
Dee Braun: I mean, I’m still learning this stuff, right. If you don’t ask, you don’t know.
Cody Bramlett: Exactly. Cool. Well, love it. Awesome.