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[Tutorial] How to Calculate your BEP...?

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GMT - 3 Hours [Tutorial] How to Calculate your BEP...?

Post by News Poster Fri May 09, 2014 5:05 pm

Good day, this topic is created with the intention to help you to know your BEP. If you know your BEP you will know how much avg do you need so you won´t lose money here, so lets start with some explanations:
AVG: Is the result of divide the amount of clicks of your referrals between a certain period of time.
BEP: Is the minimim AVG you will need to at least recover your investment.

Let´s see an example:
You rent referrals and as you know they will be with you for 30 days, we need to extend their time before they expire so we don´t lose them besides the fact that we pay a small fee for letting they expire. So 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 calculations:
Referral Price: $0.20
Referral Click Value (Standard): $0.005
Days: 30


Formula
($0.20/$0.005)/30
40/30
1.33

1.33 will be your BEP, if you can keep this avg by the end of the month you at least will recover your invesment. That is only for the first 30 days of your referrals, you need to calculate your new BEP when you extend a referral with another formula.

But don´t worry, the next boards are going to help you:

[You must be registered and logged in to see this image.]

You don´t know how to use them? Lets see an example:
You are Golden with 500 rented referrals that you extended to 150 days, you just need to look for the board with the limit of referrals you have. If you already find it you will see that you will need a 0.53 avg, with this avg you ensure not lose money and at least recover your invesment.

You can also add the membership cost to your BEP so you can renew your membership the next year, but that is another formula that if you want i can create another board later. I hope this little job can be helpful to you, if anybody can find a mistake please just let me know to fix it.

Have a nice day.

PS:
Prices already have the current discount.

-----------------------------------------------------------------------------------
How to add the membership cost to your BEP
First of all, 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 membreship one more year.

Knowing this most of all will agree that it is good to know the total BEP we need to at least recover the investment and ensure to renew our membership and maintain our referrals, in simply words if you add the membership cost to the BEP you don't need to worry for the renewing of your membership the next year (Of course if you can at least get the BEP you need).

Now, how in the world do we do this? We need some data first:
Membership Cost
Membership Duration


Now lets see an example:
You are Golden with 500 rented referrals extended to 240 days and you bought the one year Golden membership, you know that your BEP is 0.49 but this is only for the referrals expenses so we need to calculate how much more do your referrals needs to generate to help you to renew your membership one more year:
Membership cost: $70
Membership Duration: 365 days

$70 / $0.01 = 7000 clics from your referrals needed.
7000 / 365 = 19.18 clics from your referrals every day.
19.18 / 500 = 0.04 avg extra needed.

Now you know you need an extra avg of 0.04 to be able to extend your membership one more year without any other investment from your pocket, so your TOTAL BEP is:
0.49 + 0.04 = 0.53

If you can keep this Avg across the year then you will extend your referrals and renew your membership without any other investment, please have in mind these calculations doesn't take in consideration your clicks neither your direct referrals clicks therefore you can consider that as a plus to your account.

Knowing your BEP doesn't guarantee that you don't need to worry of your account, this is just the number you need to know and you have to make it come true by watching over your referrals every day and making recycling when needed.

Use it as much as you need.

Edit:
If you want an automated spreadsheet that calculates your BEP take a look over here:
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