In this instructional video, Nikhil Sai explains the two essential key performance indicators (KPIs) that determine whether a digital product or service can be profitably scaled: Earning Per Click (EPC) and Cost Per Click (CPC). He defines each metric, shows how to calculate EPC using funnel data (average customer value, cart value, OTO percentages, opt‑in rates) and illustrates the decision rule—if CPC is lower than EPC the campaign is profitable and ready for scaling, if they are equal you break even, and if CPC exceeds EPC you must optimize. Sai also highlights additional funnel metrics that inform profitability, such as refund percentages (higher for pure digital products, lower for coaching or one‑on‑one services). He recommends using ClickFunnels (or any comparable funnel analytics tool) to gather these data points, and provides practical examples (e.g., $2 EPC vs $1 CPC) to demonstrate how to interpret the numbers and decide when to increase ad spend. The video concludes with a call to action for viewers to ask questions or suggest future topics.
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What are the KPIs which you should know before you start scaling your business? Hey guys, this is Nikhil Sai. Welcome back to another video. Today, today I'm going to especially discuss regarding the KPIs which you should know before you start scaling the product. So let me start it very simply, right? Like, uh, like you should know what is your earning per click. You should know what is your cost per click. These are the simple two KPIs which determines your profit and give you the signal whether you should scale it or not. So I personally use a tool called ClickFunnels which give me the complete stat regarding the funnel and show me what is the earning per click like average customer value, cart value, and everything, right? The OTO percentages, the opt-in rates, and everything. So it's a very good KPI machine for me. It works really well for me. So no matter which tool you're using, you will get that KPIs if you analyze them and read the data, right? So the one thing which you should definitely know is what is earning per click, right? So what is the worth of if someone is clicking on your funnel, right? So check like Just in case, let's take it as $2 for instance, right? If you're selling a good offer and if it is converting well, then maybe your earning per click is $2. Let's say like 100 people are clicking and maybe a couple of people are purchasing, right? So you're making $2 per every person who is clicking the funnel, right? Who is clicking into the funnel. So if you know what is the EPC, then the earning per click, then you should check what is the CPC, the cost per click. So these are the two important KPIs which you should keep in mind while you're determining your business, whether you should scale it or not, right? So if your CPC is less than your EPC, right, let's say for instance $2 is your EPC and maybe your cost per click is $1, then you win because you're doubling your money here, right? You're putting $1 in to pay for a click and then you're making $2 out, right? As simple as that, right? Even if your CPC and EPC are same, that means you're breaking even. Right? If your EPC is more than your CPC, that means you're being profitable. Now it's time to scale, replicate it, target more audience, right? Let's say if your CPC is more than your EPC, then you're losing your money. Then you need to optimize, tweak your offer, tweak your funnel, and check different creatives, different ad sets, different ad copy, and everything, right? So if you're scaling your business, check these main two key KPIs: EPC and CPC. If your CPC is less than EPC then you definitely win. And if, let's say, if you're selling a digital product, then the next thing which you should keep in mind is refunds as well. So check what is the refund percentage. Usually for a digital product, it will be around like 50% to 20% on an average. If it is a coaching program, then it would be pretty much less. Yeah, if it's one-on-one, there won't be refunds, right? So check what is the EPC, check what is the CPC, compare them, like analyze the data, and then if your CPC is less than your EPC, then it's time to scale. Let's say your CPC is $1 and your EPC is $2. That means you're making double the money. It's the time to exactly scale your business, right? Even if you scale it to sky, still you'll be like— still you'll be left with smaller profits with a larger audience. So I hope this is making sense, guys. So if you are selling stuff, if you want to scale your business, check these two terms: EPC and CPC. If your CPC is less than your EPC, that means you win. Just go and put more money into the ads you'll make more money back. I hope this made sense, guys. Let me know if you have any more questions, comment down below. And if you're interested in any more topics, make sure to mention them in the comments. I would love to make videos on that as well. So this is Nikhil Sai, guys, signing off. Peace.
