Understanding CPM Vs CPC

The question what is the difference between CPM and CPC was asked of me recently and so in this post i will go into detail a bit better on the subject..

To begin with when you decide you want to make money from your blog or content based site, then that is where these references come into play.. If you are not interested in making money from your blog then do not bother learning these two references..

1000 – CPM
Clicks – Cost Per Click

Understanding CPM – Earnings per thousand Visitors..

The easiest way of understanding this term is by looking at your traffic levels. Its understanding is that from every thousand visitors you earn a certain amount from that traffic. This can be used in reference to any affiliate program or even ppc program.. As an example for every thousand visitors you may earn 1 dollar from one affiliate company and 2 dollars from another.. In this example it ends up that your CPM total is 3 dollars CPM (or more) if these two programs are your total programs.. So if you get 3000 visitors a day then your average earnings is 9 dollars a day..

Understanding CPC – Cost Per Click

Okay this one is really easy, CPC is where you are paid per click a affiliate ad receives. As an example depending on what keyword a cpc could pay 1 cent all the way to a couple of dollars depending on the niche and publisher program you use.

CPC has a CPM reference as it generally will produce a particular amount of earnings per thousand as well..

Some examples of good recommended companys that pay on cpc are  Bidvertiser, Infolinks and Kontera but there are many, many more..

So in conclusion there really is no VS battle between these two, they work together and as a good guide if you are getting more than 2 dollars per 1000 (CPM) then you are on a winning program for your website or blog.. I do however recommend not putting all your eggs in the one basket however, earn from at least 4 or 5 good (affiliate) programs and get a bit of earnings from a few sources..

That’s where multiple sources of online income come in..

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  1. […] (CPM) basis. Not surprisingly, when list vendors started being asked to sell lists based on a CPC versus CPM basis, for some of them the temptation to “juice the numbers” was too great. And since many of the […]

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