break-even point (BEP) is the point at
which cost or expenses and revenue are equal:
there is no net loss or gain, and one has "broken even".
A profit or a loss has not been made, although
opportunity costs have been paid, and capital has
received the risk-adjusted, expected return.
NOTE:
Fixed renewal costs and second year membership
costs are usually used in these BEP calculations.
(initial 30 day costs and recycling costs
are not included in the calculations)
Basically if your break even avg is 1.4
For example:
With 20 rented referrals you will need
an average of 28 clicks every day to break even.
(28 / 20 = 1.4)
With 20 referrals that means an average
of 28 clicks or more from your referrals
each day you're in profit for the days
owning the refs.
Here are few examples:
Standard member's formula to calculate BEP (break even point):
with 50 refs renewing at 90 days
([ (days renewing / 30 days x (1-discount%) x renew price per each ref)
= renew cost for each ref per days renewing (needs to be rounded to two decimal places)
x (# of rented referrals) x 100 = renew cost for total # of refs per days renewing in cents ])
/ (# of referrals) /(0.5)/(# of days renewing)
= BEP (break even point)
DATA NEEDED:
Enter # of rented referrals = 50
Enter days renewing = 90
Renewal Discounts = 18%
Enter cost of 1 ref per month including any discounts =$0.20
Enter price per referral click =$0.005
For STANDARD members with 50 refs renewing at 90 days.
CALCULATION EXAMPLE:
(90/30x ( 1-18% ) x $0.20 ) = $0.49
($0.49x50x100)=2450 cents
=2450/50/0.5/90days=1.089 BEP
Or 50 x 1.089 = approx. 54 clicks each day to break even
Golden member's formula to calculate BEP (break even point):
with 750 refs renewing at 240 days
([ (days renewing / 30 days x (1-discount%) x renew price per each ref)
= renew cost for each ref per days renewing (needs to be rounded to two decimal places)
x (# of rented referrals) x 100 = renew cost for total # of refs per days renewing in cents ]
+
[ (total yearly membership cost / 365 days x days renewing x 100 convert to cents) = membership costs per days renewing in cents ])
/ (# of referrals) / (# of days renewing)
= BEP (break even point)
DATA NEEDED:
Enter # of rented referrals = 750
Enter days renewing = 240
Renewal Discounts = 30%
Enter cost of 1 ref per month including any discounts =$0.22
Enter price per referral click =$0.010
Enter total yearly membership cost =$90.00
Note: Use $890 for ultimate pack, 2nd year cost $800 + $90 because 1st year of $890 is only a 1 time cost
For GOLDEN members with 750 refs renewing at 240 days.
CALCULATION EXAMPLE:
(240/30x ( 1-0.3 ) x0.22) = $1.23
($1.23x750x100)=92250 cents
+
( $90.00 /365x240x100 )=5917.808 cents
=( 92250 + 5917.808 )/750/240days=0.545 BEP
Or 750x0.545 = approx. 409 clicks each day to break even
You can find the renewal price for each
ref per month including discounts here:
https://www.neobux.com/forum/?/7/151430/How-To-Guide/0/1898541/#m1898541
Find your break even averages and calculations (by GrTaMaster) here
Find your break even averages with mix renewal days:
https://www.neobux.com/forum/?/9/215030/Extention/0/2270541/#m2270541
or
https://www.neobux.com/forum/?/9/185258/Break-even-avgs-for-different-terms/0/1981244/#m1981244
Using Excel Spread Sheet to find your BEP:
Use spread sheet #1 from this post
Or use the calculator (by a123chris7) here:
https://www.neobux.com/forum/?/7/155683/Neobux-BreakEven-Calculator/1/

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