Renting referrals plays a large part of being a member at Neobux. It’s
almost like managing a small business, but thankfully way easier! Think
of your rented referrals as “employees”. When one of your employees is
not pulling his/her weight (not clicking on enough ads) – it’s time to
let them go and hire a replacement (or in Neobux terms “Recycle” that
rented referral). That’s pretty much all there is to it, now all we need
is a strategy to optimize managing our rented referrals!
*Ignores any AutoPay and AutoRenew discounts.
What we can do, is play the probability game to keep our revenue positive. The following bullets act as a good starting point when developing your rented referral strategy – you can tweak them as you seem fit, but they have kept me in the positive even as a standard member where break even points are considerably higher:
I have a lot of “No clicks yet” because I just rented yesterday. Scroll down until you see the first date:
I would recycle the one highlighted in yellow as this one has been inactive for 5 days.
I’m in good shape! Apart from the referrals yet to click, my lowest average clicks per day are 1.5. My employees are doing great!
First we need to figure out how much the referral actually costs. This can get a little complex. Say for example if you have AutoPay on at a 15% discount and AutoRenew on at a 5% discount. Some referrals may renew with a 5% discount, some might click ads and invoke a 15% discount. Trying to figure the math and how to pull the info from Neobux can give you headaches!
So, here’s what I do. I use AutoPay so I’m guaranteed a 15% discount when someone clicks an ad. I typically manually renew referrals if and when their rental period remaining gets down to 5 days or so. I recycle for 90 days which gets me an 18% discount. I do have AutoRenew set just in case I miss a referral. Never let a referral expire!
Bottom line is, I am guaranteed at least a 15% discount on the base break evens – so a 15% discount is what I take into account when determining profit. Let’s look at a practical example.
One other point I want to stress, one way or another, you re going to incur a cost for a full days rental for every rented referral you have regardless of if they click or not. Let’s explain this by understanding what happens if a referral clicks, and if they don’t. This assumes AutoPay is turned on which I’m sure it is, right? :
The initial purchase of referrals I treat as a “Capital Cost”. As such, I calculate my break evens on the costs going forward, which use the AutoPay and AutoRenew discounts. In accounting terms, I’m not calculating my ROI, but daily operating profits going forward. Let’s put all this together into a practical example:
Let’s say I am a standard member with 300 rented referrals. My average ads clicked from rented referrals at the end of the day is 2.0. I recycled 5 referrals today. So how much money did I make?
Revenue is simple. Average clicks per referral x rented referrals x revenue per click
2.0 x 300 x $0.005 = $3.00 My expenses are: AutoPay or AutoRenew rate applied to all rented referrals (15%/18% – I use 15% to be conservative) + Recycle fees
(300 x $0.0057) + (5 x $0.07) = $2.05 Total Profit = $0.95.
Out of interest, if I were a golden member, my profit would be double as my revenue per click doubles while all other variables remain constant – $1.90.
My math is spot on, but let’s make sure. Here is the break even points with AutoPay and AutoRenew discounts applied:
What I’m saying here, is that for this particular example – by break
even point (ignoring recycle fees) is when my rented referrals click an
average of 1.13 clicks per day. Let’s see if this balances.
Before I jump into the explanations, familiarize yourself with the cost of renting through Neobux, as these costs are in someway related to the AutoPay and AutoRenew discounts:
For example, consulting the table above, if you had 550 rented referrals – your 30 day rental cost on each referral would be $0.22. (550 falls between the 501 and 750 limits). If AutoPay is switched on, you will be charged $0.22/30 less 15% ($0.0062) for each rented referral that clicks on at least 1 advertisement. This will extend their rental period by 1 day. This cost is decremented from your rental balance.
The following table is much like the one above, but shows corresponding AutoPay costs to number of referrals – which is a flat 15% regardless of how many RRs you have.
Simply click on AutoPay in the rented referral screen to turn off, click again to turn on:
Until the point I am happy with the number of rented referrals I have, and they are all set to AutoRenew at 240 days, I will keep AutoPay on. I currently have AutoRenew set at 150 days (a 25% discount), so why have AutoPay turned on at a lower 15% discount? Well, the nice thing about AutoPay is that it helps smooth out when renewal payments are due. Let’s look at the following graph from my Neobux dashboard to explain:
I just rented 55 referrals through the express queue – that’s the big spike you see in the graph above. What happens if I turn AutoPay off? All 55 RRs will renew at the exact same time, which at $0.79 each, comes out to $43.45! What happens if I don’t have at least $43.45 in my rental balance (or secondarily in my main balance) – I lose referrals!
AutoPay helps smooth out renewal payments because it only extends rental periods if that RR clicks at least one ad. Not every RR is going to click the same day, thus not every RR will be extended each day – so you get a staggering effect which helps break up the points when the next renewal payment is due.
Now look to the left of that spike. There’s still a couple of days where I will need to make sure I have enough funds to cover the renewals on 20 or so referrals, but nowhere close to 55. This to me, is the main benefit of AutoPay.
However, the risk of losing referrals through insufficient funds is much higher with AutoPay turned off, as such my AutoPay setting is staying enabled!
You also have the option of choosing how many days before the RR
expires to apply the AutoRenew payment. You can choose between 3, 5, 7,
10, 15, 20, 25 and 30 days before expiration. There is no cost advantage
to choosing to renew at a greater number of days before the RR expires,
so I have this set to 3 days.
So, if I am new to Neobux, and I rent my first 50 referrals (at a
cost of $10) with the intent of renewing at 240 days – I would need $56
(50 x 1.12) in my rental or main balance to cover the extensions!
It is not realistic to expect a $10 investment to grow to over $50 in a 30 day period – however, many Neobux users make this mistake, and set their AutoRenew period at an unrealistic point based on their profit points. If you do not have sufficient funds in your account, you lose the referrals.
If you are planning to AutoRenew at anything above 30 days, make sure you have enough funds to cover the upcoming costs. It is very easy to see when your payments are due based on the bottom graph in your statistics page, which shows you how many referrals are up for renewal in how many days:
After all my RRs renew at 150 days, I will switch it to 240 days, and most probably turn AutoPay off, as I will be relatively happy with the number of RRs I have.
Planning ahead and making good use of the statistical resources Neobux provides is very important. Many people only look at how many clicks their referrals made today, oblivious to upcoming costs or absent from any strategy to control those costs. As such, they either find themselves having to introduce new capital or end up quitting Neobux – an unfortunate result that could easily be avoided.
We need to find a balance between the two scenarios highlighted above. Here are some general tips:
Always Remember,One NEOBUX ID Using One IP Or Internet Connection With A Laptop Or Desktop.
If You Use Any PROXY Or HOTSPOT,They Will Suspend Your Account Permanantly.
Associated Costs and Break Even Points
Let’s first work on some basic numbers. As you would imagine, when you let an employee go, you have to pay a little severance pay. In Neobux terms, this is a fixed cost at $0.07 per referral you choose to recycle. There are 3 ways you can recycle a referral:- Pay $0.07 from your rental balance
- Use NeoPoints to pay for the recycle, at a current cost of 92 NeoPoints per referral
- Allow them to auto recycle after 14 days of inactivity at no cost
Tip: I would not recommend
letting any inactive referral auto recycle. The reason being, you can
recover the $0.07 in 1 or 2 days, instead of losing 14 days of potential
revenue.×
Now for the break even points. These will vary based on how many
rented referrals and what type of membership you have. This strategy
will focus on standard and golden memberships:Revenue per Click | BE Clicks Per Day* | ||||
Referrals | Cost Monthly | Standard | Golden | Standard | Golden |
0 -> 250 | $0.2000 | $0.0050 | $0.0100 | 1.33 | 0.67 |
251 -> 500 | $0.2100 | $0.0050 | $0.0100 | 1.40 | 0.70 |
501 -> 750 | $0.2200 | $0.0050 | $0.0100 | 1.47 | 0.73 |
751 -> 1000 | $0.2300 | $0.0050 | $0.0100 | 1.53 | 0.77 |
1001 -> 1250 | $0.2400 | $0.0050 | $0.0100 | 1.60 | 0.80 |
1251 -> 1500 | $0.2500 | $0.0050 | $0.0100 | 1.67 | 0.83 |
1501 -> 1750 | $0.2600 | $0.0050 | $0.0100 | 1.73 | 0.87 |
more than 1750 | $0.2700 | $0.0050 | $0.0100 | 1.80 | 0.90 |
Developing a Rented Referral Strategy
Now we know our costs, and how productive our “employees” need to be to make our business profitable, we can develop a rented referral strategy to optimize revenue. We need to find a midpoint between:- Recycling too much – spending too much on recycling can destroy our profits
- Recycling too little – allowing our clicks p/day to fall too low will put us in the red too
What we can do, is play the probability game to keep our revenue positive. The following bullets act as a good starting point when developing your rented referral strategy – you can tweak them as you seem fit, but they have kept me in the positive even as a standard member where break even points are considerably higher:
- Recycle any inactive referral that hasn’t clicked in 4-5 days. Probabilities are high that the referral has lost interest. I have seen apparently inactive referrals bounce back to life after 3 days and be generally good clickers. Even employees need a little break from time to time!
I have a lot of “No clicks yet” because I just rented yesterday. Scroll down until you see the first date:
I would recycle the one highlighted in yellow as this one has been inactive for 5 days.
- Never recycle a referral that is above your break even point. I know, it’s tempting to bring your average up, but you could recycle and get an inactive referral, or one that performs worse. This is one of those times where people are too aggressive with recycling rented referrals, and a popular way of eating up profit with needless recycling.
- Recycle any referral that falls below 20% of your break even point and that has been a referral for at least 10 days. Weed out the low performers that are losing you money!
I’m in good shape! Apart from the referrals yet to click, my lowest average clicks per day are 1.5. My employees are doing great!
- Recycle daily if possible to ensure we are not leaving referrals that should be recycled any longer than necessary in our account – and missing out on revenue from a new rented referral.
Calculating Profit
There’s no point to having a rented referral strategy if we don’t attempt to gauge how successful it is. To calculate accurately profit we need to take into account AutoPay and AutoRenew. As you know, when we use both of these features, we lower the cost of the referral per month.First we need to figure out how much the referral actually costs. This can get a little complex. Say for example if you have AutoPay on at a 15% discount and AutoRenew on at a 5% discount. Some referrals may renew with a 5% discount, some might click ads and invoke a 15% discount. Trying to figure the math and how to pull the info from Neobux can give you headaches!
So, here’s what I do. I use AutoPay so I’m guaranteed a 15% discount when someone clicks an ad. I typically manually renew referrals if and when their rental period remaining gets down to 5 days or so. I recycle for 90 days which gets me an 18% discount. I do have AutoRenew set just in case I miss a referral. Never let a referral expire!
Bottom line is, I am guaranteed at least a 15% discount on the base break evens – so a 15% discount is what I take into account when determining profit. Let’s look at a practical example.
One other point I want to stress, one way or another, you re going to incur a cost for a full days rental for every rented referral you have regardless of if they click or not. Let’s explain this by understanding what happens if a referral clicks, and if they don’t. This assumes AutoPay is turned on which I’m sure it is, right? :
- If a rented referral clicks – you pay for that days rental via AutoPay
- If a rented referral does not click – you pay for that days rental, because you lose a days rental
The initial purchase of referrals I treat as a “Capital Cost”. As such, I calculate my break evens on the costs going forward, which use the AutoPay and AutoRenew discounts. In accounting terms, I’m not calculating my ROI, but daily operating profits going forward. Let’s put all this together into a practical example:
Let’s say I am a standard member with 300 rented referrals. My average ads clicked from rented referrals at the end of the day is 2.0. I recycled 5 referrals today. So how much money did I make?
Revenue is simple. Average clicks per referral x rented referrals x revenue per click
2.0 x 300 x $0.005 = $3.00 My expenses are: AutoPay or AutoRenew rate applied to all rented referrals (15%/18% – I use 15% to be conservative) + Recycle fees
(300 x $0.0057) + (5 x $0.07) = $2.05 Total Profit = $0.95.
Out of interest, if I were a golden member, my profit would be double as my revenue per click doubles while all other variables remain constant – $1.90.
My math is spot on, but let’s make sure. Here is the break even points with AutoPay and AutoRenew discounts applied:
Revenue per Click | BE Clicks Per Day | |||||
Referrals | Cost Monthly | After AutoPay/Renew | Standard | Golden | Standard | Golden |
0 -> 250 | $0.2000 | $0.1700 | $0.0050 | $0.0100 | 1.13 | 0.57 |
251 -> 500 | $0.2100 | $0.1785 | $0.0050 | $0.0100 | 1.19 | 0.60 |
501 -> 750 | $0.2200 | $0.1870 | $0.0050 | $0.0100 | 1.25 | 0.62 |
751 -> 1000 | $0.2300 | $0.1955 | $0.0050 | $0.0100 | 1.30 | 0.65 |
1001 -> 1250 | $0.2400 | $0.2040 | $0.0050 | $0.0100 | 1.36 | 0.68 |
1251 -> 1500 | $0.2500 | $0.2125 | $0.0050 | $0.0100 | 1.42 | 0.71 |
1501 -> 1750 | $0.2600 | $0.2210 | $0.0050 | $0.0100 | 1.47 | 0.74 |
more than 1750 | $0.2700 | $0.2295 | $0.0050 | $0.0100 | 1.53 | 0.77 |
- Revenue = 300 x 1.13 x 0.005 = $1.7
- Expenses = 300 x 0.0057 = $1.71
Click The Above Banner And Get Registerd And Start Earning Money :-)
AutoPay, AutoRenew and Recycling
AutoPay, AutoRenew and Recycling are the 3 costs associated with renting referrals in Neobux. You have to fully understand the concepts of each in order to make a decent return from renting referrals. This guide will dig into the details of each cost and I will also share with you how I utilize all 3.Before I jump into the explanations, familiarize yourself with the cost of renting through Neobux, as these costs are in someway related to the AutoPay and AutoRenew discounts:
Number of RRs | 30-Day Cost |
0 -> 250 | $0.2000 |
251 -> 500 | $0.2100 |
501 -> 750 | $0.2200 |
751 -> 1000 | $0.2300 |
1001 -> 1250 | $0.2400 |
1251 -> 1500 | $0.2500 |
1501 -> 1750 | $0.2600 |
more than 1750 | $0.2700 |
AutoPay
AutoPay is the most complex of the 3 costs, so we’ll start here. Every day that one of you rented referrals clicks on an ad, you pay an AutoPay fee – which extends the rental period of that referral by one day. The cost of that day’s extension is discounted by 15%.For example, consulting the table above, if you had 550 rented referrals – your 30 day rental cost on each referral would be $0.22. (550 falls between the 501 and 750 limits). If AutoPay is switched on, you will be charged $0.22/30 less 15% ($0.0062) for each rented referral that clicks on at least 1 advertisement. This will extend their rental period by 1 day. This cost is decremented from your rental balance.
The following table is much like the one above, but shows corresponding AutoPay costs to number of referrals – which is a flat 15% regardless of how many RRs you have.
Number of Referrals | 30-Day Cost | AutoPay Cost |
0 -> 250 | $0.2000 | $0.0057 |
251 -> 500 | $0.2100 | $0.0060 |
501 -> 750 | $0.2200 | $0.0062 |
751 -> 1000 | $0.2300 | $0.0065 |
1001 -> 1250 | $0.2400 | $0.0068 |
1251 -> 1500 | $0.2500 | $0.0071 |
1501 -> 1750 | $0.2600 | $0.0074 |
more than 1750 | $0.2700 | $0.0077 |
Turning AutoPay On/Off
It’s very easy to switch AutoPay on and off. Login to your Neobux account and click on the rented referral icon at the top right of your dashboard:Simply click on AutoPay in the rented referral screen to turn off, click again to turn on:
Should I Enable or Disable AutoPay?
Different people have different opinions on this. If you remember, AutoPay attracts a 15% discount. When we look at AutoRenew, we will see discounts up to 30%. Based on this, many people suggest turning AutoPay off and AutoRenew on for at least 90 days, where the AutoRenew discount becomes bigger than the AutoPay discount. I disagree.Until the point I am happy with the number of rented referrals I have, and they are all set to AutoRenew at 240 days, I will keep AutoPay on. I currently have AutoRenew set at 150 days (a 25% discount), so why have AutoPay turned on at a lower 15% discount? Well, the nice thing about AutoPay is that it helps smooth out when renewal payments are due. Let’s look at the following graph from my Neobux dashboard to explain:
I just rented 55 referrals through the express queue – that’s the big spike you see in the graph above. What happens if I turn AutoPay off? All 55 RRs will renew at the exact same time, which at $0.79 each, comes out to $43.45! What happens if I don’t have at least $43.45 in my rental balance (or secondarily in my main balance) – I lose referrals!
AutoPay helps smooth out renewal payments because it only extends rental periods if that RR clicks at least one ad. Not every RR is going to click the same day, thus not every RR will be extended each day – so you get a staggering effect which helps break up the points when the next renewal payment is due.
Now look to the left of that spike. There’s still a couple of days where I will need to make sure I have enough funds to cover the renewals on 20 or so referrals, but nowhere close to 55. This to me, is the main benefit of AutoPay.
Remember! AutoPay is automatically disabled for any RRs that have 20 days or less remaining of their rental period.
Furthermore, the affect on my break-even point is relatively minimal.
Suppose 40% of my RRs click at least one ad, I have AutoPay turned on
and AutoRenew at 150 days – my break even point is 0.538. With AutoPay
turned off, it is 0.5. My break even point is lower if I turn AutoPay
off because the discount on 150 days AutoRenew is higher than the
AutoPay discount – so I would assume the higher discount on all
referrals.However, the risk of losing referrals through insufficient funds is much higher with AutoPay turned off, as such my AutoPay setting is staying enabled!
AutoRenew
We touched a little on AutoRenew above. As AutoPay, it is a discounted cost in relation to the renewal of your rented referrals. However, it is not a daily cost like AutoPay – the cost is charged up front based on a chosen number of renewal days – 15, 30, 60, 90, 150 and 240. The longer you renew for, the higher the discount to renew per referral:15 days | 30 days | 60 days | 90 days | 150 days | 240 days |
0% | 5% | 10% | 18% | 25% | 30% |
Turning AutoRenew On/Off
You access AutoRenew settings in the same place as AutoPay settings, again clicking on it to enable or disable. When you enable, you have the options of setting the AutoRenew length of time, as well as how many days before the expiration of a RR the renewal should be made:Planning for AutoRenew Costs
It’s very easy to just set this to 240 days because you want the biggest discount on your rented referrals, but bear in mind the costs for extending the rental period of a referral:AutoRenew Period | ||||||
Number of RRs | 15 Days | 30 days | 60 days | 90 days | 150 days | 240 days |
0 -> 250 | $0.1000 | $0.1900 | $0.3600 | $0.4920 | $0.7500 | $1.1200 |
251 -> 500 | $0.1050 | $0.1995 | $0.3780 | $0.5166 | $0.7875 | $1.1760 |
501 -> 750 | $0.1100 | $0.2090 | $0.3960 | $0.5412 | $0.8250 | $1.2320 |
751 -> 1000 | $0.1150 | $0.2185 | $0.4140 | $0.5658 | $0.8625 | $1.2880 |
1001 -> 1250 | $0.1200 | $0.2280 | $0.4320 | $0.5904 | $0.9000 | $1.3440 |
1251 -> 1500 | $0.1250 | $0.2375 | $0.4500 | $0.6150 | $0.9375 | $1.4000 |
1501 -> 1750 | $0.1300 | $0.2470 | $0.4680 | $0.6396 | $0.9750 | $1.4560 |
more than 1750 | $0.1350 | $0.2565 | $0.4860 | $0.6642 | $1.0125 | $1.5120 |
It is not realistic to expect a $10 investment to grow to over $50 in a 30 day period – however, many Neobux users make this mistake, and set their AutoRenew period at an unrealistic point based on their profit points. If you do not have sufficient funds in your account, you lose the referrals.
If you are planning to AutoRenew at anything above 30 days, make sure you have enough funds to cover the upcoming costs. It is very easy to see when your payments are due based on the bottom graph in your statistics page, which shows you how many referrals are up for renewal in how many days:
My AutoRenew Settings
Currently I am trying to get all my RRs to renew at 150 days. I am having to introduce new capital because I am also renting more referrals. This is something I plan for and know how much it is going to cost ahead of time.After all my RRs renew at 150 days, I will switch it to 240 days, and most probably turn AutoPay off, as I will be relatively happy with the number of RRs I have.
Planning ahead and making good use of the statistical resources Neobux provides is very important. Many people only look at how many clicks their referrals made today, oblivious to upcoming costs or absent from any strategy to control those costs. As such, they either find themselves having to introduce new capital or end up quitting Neobux – an unfortunate result that could easily be avoided.
Recycling
Recycling is the easiest cost associated with renting referrals to understand, but perhaps the most debatable of how and when to apply. Recycling (in Neobux lingo) refers to replacing an inactive rented referral with a different, hopefully more active rented referral. The cost to recycle a referral depends on your membership but is typically $0.07. Emerald and Platinum members are charged $0.06, while Ultimate members are charged just $0.04.When to Recycle a Referral
This is a tough question to answer. Neobux is a dynamic environment so to apply a static recycling strategy would not make sense. Some days you will recycle more, some days less. If you recycle too much, your profits will be eaten up by recycling fees. If you recycle too little, you will be burdened with a rented referral base of inactive clickers, and your profits will drop.We need to find a balance between the two scenarios highlighted above. Here are some general tips:
- Recycle Regularly – there’s no point in keeping inactive referrals and delaying their recycle by days – only to spend the same amoun recycling them – when you could have an active RR for those days if inactivity.
- Give your RR’s a chance – not everyone clicks everyday - the below RR has times where one of my RRs has not clicked for 2 days, but is still generating me 2.6 clicks on average per day, way above my break-even of 0.529. Recycle on a case by case basis.
- All inactive referrals are automatically replaced after 14 days of inactivity. I would advise not waiting until that point. Recycle any referral that hasn’t clicked in at least 7 days. That’s 7 days click revenue you can be earning before the 14 day inactivity period.
Always Remember,One NEOBUX ID Using One IP Or Internet Connection With A Laptop Or Desktop.
If You Use Any PROXY Or HOTSPOT,They Will Suspend Your Account Permanantly.
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