How I calculate Profit
Different people calculate profit in different ways. I look at it like this:
“WHAT IS MY DAILY PROFIT AFTER PAYING FOR REFERRAL CLICKS (CONSIDERING AUTOPAY DISCOUNTS), SUSTAINING MY REFERRALS (THROUGH AUTORENEW DISCOUNTS) AND TAKING INTO ACCOUNT RECYCLING FEES.”
I don’t concern myself with the initial cost of referrals, this is more of an investment cost – not a daily cost/profit calculation. I want to know if – day by day – I am making money on my investment or not, while being able to sustain my rented referral base.
Accurately Recording Revenue and Costs
Revenue – the Simple One!
For those that do want to know the math behind it, let’s first focus on accurately understanding revenues and costs. These vary based on your membership level and how many rented referrals you have.
First, revenue from click commissions – this one’s easy:
Standard
|
Golden
|
Emerald/
Sapphire
|
Platinum/
Diamond
|
Ultimate
| |
| Extended Exposure | $0.0100 | $0.0200 | $0.0200 | $0.0200 | $0.0200 |
| Standard Exposure | $0.0050 | $0.0100 | $0.0100 | $0.0100 | $0.0100 |
| Fixed Ads | $0.0050 | $0.0100 | $0.0100 | $0.0100 | $0.0100 |
Figuring out the Cost of Rented Referrals
The cost to sustain rented referrals (and therefore your daily profit) is going to vary based on whether you have AutoPay and/or AutoRenew switched on and your level of recycling. There are several combinations of strategy that you can apply resulting in 4 different cost calculations as per below:
- Option 1: AutoPay off and AutoRenew turned off
This one is the most simple. The daily cost is the cost of the referral multiplied by the number of referrals divided by 30. Note the cost of the referral is based on your membership level as below:
| Referrals | Monthly |
| 0 -> 250 | $0.20 |
| 251 -> 500 | $0.21 |
| 501 -> 750 | $0.22 |
| 751 -> 1000 | $0.23 |
| 1001 -> 1250 | $0.24 |
| 1251 -> 1500 | $0.25 |
| 1501 -> 1750 | $0.26 |
| more than 1750 | $0.27 |
So if we have 700 referrals, our daily cost to sustain them would be:
$0.22 x 700 / 30 = $5.13, plus any recycling fees. Anything over that is my daily profit.
- Option 2: AutoPay switched on, AutoRenew switched off
This one again is relatively easy to understand, although includes an extra calculation. The main thing to understand is that whether your rented referral clicks or not, you are still paying for that referral for a day, either through AutoPay, or by losing a days rental if they don’t click.
For the rented referrals that do click, you get a 15% discount on the daily cost of that referral. If they don’t, you need to take into account the cost of that referral divided by 30.
Let’s again assume we have 700 rented referrals, 400 of them click at least one ad, 300 do not click. Our cost calculation would be:
400 x ($0.22 – 15%) / 30 = $2.49 plus the ones that didn’t click;
300 x $0.22 / 30 = $2.20 – total cost is $4.69 plus any recycling fees.
Tip: To workout how many referrals have clicked in a particular day, go into your Neobux dashboard, navigate to the statistics page and divide your total AutoPay cost for that day by your AutoPay cost per referral.
- Option 3: AutoPay switched off, AutoRenew switched on
This is a common strategy in Neobux, for the more advanced user. We will basically AutoRenew at a length of time, that provides a larger discount than the 15% AutoPay discount rate. Many users AutoRenew for 240 days, which attracts a 30% discount rate! Like the first example, this one is very simple. We multiply number of referrals by the (cost of the referral – discount %) divided by 30 days.
Here are the AutoRenew discounts:
| 15 days | 30 days | 60 days | 90 days | 150 days | 240 days |
| 0% | 5% | 10% | 18% | 25% | 30% |
Let’s take the same 700 rented referral example we have been using and assume we AutoRenew for 90 days. Our cost calculation would be:
700 x ($0.22 – 18%) / 30 = $4.21 plus any recycling fees.
A couple of things we need to note on this example. It doesn’t matter if AutoRenew is set to 90, 150 or even 240 days – the cost of the referral is based over 30 days, so we will always divide by 30.
Important: Also, if you initially rent a referral for 30 days with intent to AutoRenew at >30 days – you may need to introduce new capital to renew after the initial 30 days as the profit made on that referral may not be enough to renew for 60-240 days.
- Option 4: AutoPay switched on, AutoRenew switched on
For this example, we will duplicate our cost calculation of Option 2, but apply the AutoRenew discount rates to the rented referrals that don’t click, instead of the full cost of the rented referral.
We will use the same figures from option 2, but assume we have AutoRenew set to 90 days.
400 x ($0.22 – 15%) / 30 = $2.49 plus the ones that didn’t click;
300 x ($0.22-18%) / 30 = $1.80 – total cost is $4.29 plus any recycling fees.
This is a great strategy for anyone new to Neobux. The AutoPay function helps spread out when your next payment is due on rented referrals (as they will not all renew on the same day) and typically gives you enough time build up revenue from click commissions to renew at the 18% discount rate while only having to introduce very little new capital or none at all.
Calculating Profit Summary
A lot of people miscalculate profit, which leads them to withdraw money too soon and not be able to sustain rented referrals. Neobux is not a get rich quick scheme and you must plan to re-invest some of that profit to sustain and grow your rented referral base to generate bigger returns.
Calculating accurate profit is very simple, just know whether you are utilizing AutoPay or AutoRenew or not, how many recycles you make and use the respective cost calculation from options 1-4 above. Better still, download my free Neobux profit calculator and let Excel do the hard work for you!
