You make money or lose money in Neobux depends upon how well you manage your rented referrals. Managing Rented Referrals is the essence of making profit with any PTC sites.
In my previous article where I showed you my strategy of earning $20 per day, you learned how important it is to upgrade your account so that you can get higher CPC and more rented referrals.
However in this article we will develop a complete strategy for dealing with rented referrals.
Establish your BEP (Breakeven Point)
The first important step for managing your rented referrals is establishing BEP or breakeven point. BEP is very important to know how much profit you can really make with your referrals.
Let us calculate BEP for the golden member.
Cost for Extension of 1 Rented Referral for Less than 250 RRs
- For 240 Days = $1.12 (30% Discount)
- For 150 Days = $0.75 (25% Discount)
- For 90 Days = $0.50 (18% Discount)
- For 60 Days = $0.36 (10% Discount)
- For 30 Days = $0.20 (No Discount)
Let us assume you are a Golden Member with 100 RRs.
- For 1RR/1Day = $1.12/240 Days = $0.005
- For 100 RR/1 Day = 100 * $.005 = $0.5
The Cost of Recycle is $0.07 per Rented Referral
Considering 2% inactive Rented Referrals a day
- 1 RR Recycling Cost = $0.07
- 2 RR Recycling Cost = $0.14
Golden Membership Cost
1 Day = $90/365 = $0.25
Total Cost of 100 RRs/Day = Extension Cost + Recycle Cost + Golden Membership Cost = $0.5 + $0.14 + $0.25 = $0.89
Calculate Average Total Clicks
Commission per click from RR = $0.01
Average Total Clicks You need = $0.89/$0.01 = 89 Clicks
BEP = Average Total Clicks/Number of RRs
BEP = 89 Clicks/100 = 0.89 Click
Therefore it means any RR who clicks lower than 0.89 click per day is unprofitable. And if RR clicks higher than 0.89 click per day is profitable. So keep Rented Referrals with click above 0.89 per day.
The above calculation is just as an example to show how BEP is calculated to get maximum profits. You need to calculate your own BEP rate according to your extension period and recycle rate.
Rent Referrals for Straight 240 Days
Renting Referrals cost money and you want to make most out of your Rented Referrals considering the buying price of RRs. If you rent referrals for longer time period then Neobux is ready to give you discounts.
Here is the table.
|Rented Referrals||Monthly Price||1 Month Price||8 Months Price (No Discount)||8 Months Price (30% Discount)|
|0 TO 250||$0.20||$50||$400||$280|
|251 to 500||$0.21||$52.5||$420||$294|
|501 to 750||$0.22||$55||$440||$308|
|751 to 1000||$0.23||$57.50||$460||$322|
|1001 to 1250||$0.24||$60||$480||$336|
|1251 to 1500||$0.25||$62.50||$500||$350|
|1501 to 1750||$0.26||$65||$520||$364|
|1751 to 2000||$0.27||$67.5||$540||$378|
|Extension Period||Discount||Special Discount|
Special Discount means periods like Christmas, Halloween, NeoBux’s anniversary etc. You can just calculate how much money you can save if you are renting RRs for straight 240 days instead just 30 days. So the best strategy to make profit with Neobux Rented Referrals is renting for 8 months.
Buying More Referrals Does Not Mean More Profit
We talked about the time period for which you must be renting your RRs. But how much do you need to buy rented referrals? 300, 500, 700 or 1500? The question is very relevant because buying more referrals does not necessarily means more profit.
You can buy less rented referrals and make more profit rather buying 1500 RRs at one go. I will show you by doing some simple math.
Member X: Gold Membership – 750 RRs – 240 Days Renewal – $0.6 Click/Day
Member Y: Gold Membership – 800 RRs – 240 Days Renewal – $0.6 Click/Day
X and Y both are gold members and make $0.6 average click and the renewal period of 240 days each.
So you might expect that the member Y is going to make more profit because he has rented 800 referrals. No you are wrong. Just see the table below.
|Total Expenses||750 X $0.154 X 8 = $924||800 X $0.161 X 8 = $1024|
|Earnings||750 X $0.6 X $.01 (Commission) X 240 = $1080||800 X $0.6 X $0.01 (Commission) X 240 = $1152|
|Net Profit||$1080 – $924 = $156||$1152 – $1024 = $128|
So after 8 months Member X ($156) makes more than member Y ($128) even though the former one rented 50 referrals less than the latter one.
Why is it so?
Simply because Member Y ends up paying more renewal fees ($0.161) than member X.
Therefore your strategy should be taking full advantage of renewal fee discount rather buying more referrals.
A Recycling Policy for Your Rented Referrals
Once you know how and how much to rent RRs you need to follow a well developed recycling policy. Recycling is very important because only 30% to 40% of your Rented Referrals are active and remaining inactive.
You need to have an active strategy for recycling your RRs because that can make a big difference to your profits.
However how do you know which RRs are to be recycled?
There are 4 types of bad clickers you need to look out for.
Type 1: Referrals Who Click 2 ads or even less.
Type 2: Referrals who click their ads only once in a while.
Type 3: Referrals who are very active in the beginning and have great clicking average but they die down after 1 month. Their average decreases gradually.
Type 4: Referrals who would just like to bypass the 14 days deadline and click once on the day 13th.
Now after categorizing bad clickers into 4 groups you would immediately like to recycle Type 4. That’s no brainer. However still this will not increase your average click.
So in the next step you may like to recycle Type 2 who has an average of less than 1.
Initially your average clicks may go up but after some time your clicks will continue to drop even after recycling the Type 2 referrals.
It is because Type 2 group may cease to exist but another group will start increasing in numbers.
You pay attention and try to weed out certain group of bad clickers but another group sneaks up on you.
So you have to employ another strategy to increase your average clicks.
In other words there is no, one fixed strategy that you can follow and increase your average click.
Your strategy must keep on evolving with time.
General Rules for Recycling Rented Referrals
Here are few general rules that you can follow when it comes to recycle.
1. If you have 500 to 600 Rented Referrals then spend at least $0.60 on recycling. Similarly if you have over 2500 referrals then spend $2.
2. Sort referral by average clicks. Choose top 20% of referrals from the list and mark them as your best referrals. The clicking average must be above 1.7. Recycle others.
3. Segregate your referrals in groups as I mentioned earlier in this paragraph.
4. Sort by Next Payment date. If the next payment is 10 days and clicking average is less than 1.6 then recycle them.
5. Do not over recycle your referrals because it may lower your profits. Always recycle 10% of your RRs in a given day.
6. Use auto recycle to your advantage.
So this was a complete strategy for recycling your Rented Referrals. If you have not joined Neobux yet, click here to signup now.