Affiliate Marketing • 23 min read
Understanding Key Performance Indicators (KPIs) is vital to measuring success in any industry. While we are here to talk about KPIs for offers concerning affiliate marketing, we want to look specifically at the health and wellness industry standards inside of this article.
East 5th Avenue has over a decade of experience helping health and wellness brands to build and scale their affiliate programs. We will use health and wellness KPI examples in this article, but the same logic will apply to all other niches.
Why It Is Important To Know Your Offer KPIs
- Knowing your offer KPIs will help you seal the deal faster and will attract bigger affiliate partners if you’re beating industry standards.
- Understanding other offer’s KPIs will help you determine faster if it will be a good JV Partner for you based on their stats.
Let’s jump right into the questions we need to ask ourselves as offer and business owners:
How Does Your Offer Compare to Your Competition?
Take a look at the chart below, pull up your own stats, and let’s break down what each means and what you can do to ensure your offer is ready for affiliates to send traffic.
Before we jump into how to read and evaluate your specific stats, here are some quick reminders about what each term in the chart above is referencing.
- Open rate is the percentage of your subscribers who open an email sent by you.
- Click-through rate is when a person clicks through from your email to the sales or offer page.
- Lead rates are for specific offers where gathering leads is the goal.
- Sales or conversion rates are how many people purchase compared to how much traffic is sent.
- Revenue per click is how much money is made on average compared to the total amount of clicks going to the offer. This is also the amount you need to make as a brand for the offer to work or make sense financially.
- Earnings per lead is how much the affiliate is making for each lead acquired.
- Earnings per click is how much the affiliate earns for each click sent.
Evaluating Your Affiliate KPIs
Once you know your numbers, we have broken them down into a useful color scale to help you know if an offer is ready to launch, needs work, is average, or is high-performing and ready to scale.
Open Rate KPIs For The Health & Wellness Industry Affiliate Market
If your open rates are at 10% or lower, your offer is likely not ready to launch. Yellow is 11-15% and typically is a sign that the offer may underperform. However, if you have other stats that are in the green, then it may perform within the normal range for the industry. Green open rates are 16-20% and are considered good for the industry.
A gold star is over 20% and is a sign that your offer is scalable and should get a lot of great results. The only thing to keep in mind is that if you are seeing 25-30% open rates and above, you may be looking at clickbait, and it may have diminished returns in other areas of the sales funnel.
Click Through Rate KPIs For The Health & Wellness Industry Affiliate Market
Click-through rates are considered poor if they are 5% or lower and may indicate that you need a more compelling call to action inside of your email. Yellow is 6-10% and is a sign that the offer is unlikely to send as many clicks to the sales page as you would like.
Green is 11-15% for click-through rates and is a good goal or industry standard. Lastly, anything over a 16% click-through rate is a gold star. Keep in mind that open rate and click-through rates work hand in hand. If your email subject line is getting a good amount of opens, then you’re primed and ready to entice the reader to click through to the offer.
However, as we mentioned before, if you have a super high open rate because of clickbait, then you may lose out on having a good click-through rate because people will bounce at this stage. The goal is to have both your open rate and your click through rate in the green.
Lead Rate KPIs For The Health & Wellness Industry Affiliate Market
If you have a lead funnel, red is 30% or lower, yellow is 31-44%, green is 45-60% and a gold star is anything over 60%. Once you hit 45-60% this is a good time to take your offer to affiliates. If you’re getting over 60% then your offer is doing excellent.
If your lead rate is under 45%, we recommend you wait to launch but instead work with us to optimize your funnel. If your rate is under 30%, it may need to rework your offer completely.
Sales Or Conversion Rate KPIs For The Health Industry Affiliate Market
For conversion rates, red is anything under 2%, yellow is 3-5%, green is 6-9%, and the gold star range is 10% or more. Most offers are in the 3-5% range. This is still a place where the offer is being optimized, but it is ok to have it live.
Unless all of your other stats are green and gold, we do not recommend launching your offer to affiliates if it is at a 2% or lower conversion rate. This is when we recommend you schedule a free growth session with our team.
Revenue Per Click (RPC) KPIs For The Health & Wellness Industry Affiliate Market
RPC is considered red if it is under $1.24, yellow between $1.25 and $1.99, green between $2.00 and $5.99, and a gold star at $6.00 and above. This is an important part of the math for you if you are evaluating your own offer because this is the amount of money you make as an offer owner.
Earnings Per Lead (EPL) KPIs for the Health & Wellness Industry Affiliate Market
The average earnings per lead is red when under $1.24, yellow between $1.25 and $1.99, green between $2.00 and $3.99, and a gold star at $4.00 and above. This is strongly dependent on your lead rate, and if you are in the red or low yellow it can cause leads to be too expensive if you were to get an affiliate working with you.
Anything over $3 is considered to be in a good place for the health & wellness industry, and you are good to work with affiliates and scale your offer. We have seen some of our clients making upwards of $10 to $15 per lead, which is even more golden.
Earnings Per Click (EPC) KPIs For The Health & Wellness Industry Affiliate Market
EPC is red when it is under $0.69, yellow between $0.70 and $0.99, Green between $1.00 and $2.99, and gold start when it is over $3.00. When we are working with health & wellness brands, we talk a lot about how an offer over $1.00 is a great place to be.
Many offers are still live while they are in the yellow, but this is a time to be very focused on optimization and bringing your EPC above the $1.00 mark. If you are in the red we strongly recommend that you do not hurt your affiliate relationships by getting them to promote your offer. This is the time to send cold traffic or prepay for traffic so that you can rework it and get the numbers up.
Why Should I Optimize My Offers Before Using Affiliates?
Affiliate marketing is a powerful way to make money but it’s important to remember that it is relationship based; if you do not have your KPIs in the green or above, then you will burn out your partners and lose out on long-term and profitable relationships. So take your time, work with experts, and prepare your funnel before recruiting affiliates.
When you have your offer ready to go, then you will build trust quickly with your affiliate partners because they will know that with you they will get consistent results and make money, and that will make them want to continue to promote your offer again.
If you are in the red, it is time to be honest with your partners and pull back and rework your offer before relaunching. It is common for brands to launch an offer and then stop optimizing it. The best brands and partners are constantly working on optimizing and improving their KPIs so they continue to scale.
Need Support Creating and Scaling Your Affiliate Program?
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VIP Masterclass Lesson: Industry Standard KPIs