What is PTC AVG, BEP and ROI?
AVG (Average): Is the result of divide the amount of clicks of your referrals between a certain periods of time, usually calculated on daily basic.
BEP (Break Even Point): Is the minimum AVG you’ll need to at least recover your investment. So main thing is to know your BEP so you can manage referrals to be more profitable for you.
ROI (Return on Investment): measures the gain or loss generated on an investment relative to the amount of money invested. ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company’s profitability or to compare the efficiency of different investments.
Why it is important to add the membership cost to the BEP?
Simple, if you only work based on the BEP for the extensions of your referrals you are not considering the possibility to extend your membership.
What problems could you have?
If you keep at least the BEP you need to extend your referrals surely you won’t have enough money to renew your membership, therefore you will need to invest again to extend your membership one more period.
You rent referrals and as you know they’ll work for you for 30 days, before they expire and we need to extend their time so we don’t lose them besides the fact that we pay a small fee for letting they expire.
We need to know how much AVG or money we need to earn to at least recover our investment, so we need to do some maths and create formula for several types of membership standard and upgraded.
How to calculate BEP for Standard membership?
| MRC | Monthly Referral Cost |
| RP | Referrals Period (always setup 30 days) |
| PRC | Price Referral Click |
| MC | Membership Cost |
| MP | Membership Period |
| AR | Amount Referrals |
| EDR | Extending Discount Referrals(30%=0.7 20%=0.8 10%=0.9 and other) |
BEP Formula for Standard membership without extension referrals is: (MRC/PRC)/RP
Referral cost is $0.20 (30 days period)
Referral Click Value (Standard): $0.001
($0.20/$0.001)/30=6.66 AVG
Or simply explanation you need 200 clicks from RR to cover his expenses. That is 6.66 clicks per day and that is your break point. If you have more than that you have profitable RR and if you have less you should recycle him or just let him expire.
BEP Formula for Standard membership with extension referral discount : (MRC*EDR)/RP/PRC
You are Standard member and you have 100 Rented Referrals (cost $0.2 for one RR per month) that you extended to 90 days with 18% discount
($0.2*0.82)/30/$0.001=5.46 AVG
Or simply explanation you need 492 clicks from RR to cover his expenses. That is 5.46 clicks per day and that is your break point. If you have more than that you have profitable RR and if you have less you should recycle him or just let him expire.
So that’s 164 per 30 days. Now without the discount it’d be 200 per 30 days.
How to calculate BEP for Upgraded membership?
| MRC | Monthly Referral Cost |
| RP | Referrals Period (always setup 30 days) |
| PRC | Price Referral Click |
| MC | Membership Cost |
| MP | Membership Period |
| AR | Amount Referrals |
| EDR | Extending Discount Referrals(30%=0.7 20%=0.8 10%=0.9 and other) |
Upgraded members BEP is harder to calculate.
BEP Formula for Upgraded member with extension referral discount: [(MRC*EDR)/RP+(MC/MP/AR)]/PRC
Colonel membership duration 90 days cost $114
2000 rented referrals with extension 90 days (15% discount), $0.23 cost per referral, referral click is $0.001
[(0.23*0.85)/30+(114/90/2000)]/0.001= 7.15 AVG
That is 7.15 clicks per day for breakeven point.
No responses yet