I was wondering.. maybe Rui could help with this one..
What was getting more expensive as we get more rented referrals?
Was it the initial renting/recycling/deleting.. I can't find it on the site..
I think there was such a table and the prices varied after every 250 referrals or so but I'm not sure as it was a long time ago when I last saw it..
I was doing some calculations the other day regarding YGP and whether it's better to rent some referrals for a long time or many more for a shorter duration. My goal was to narrow down the ROI period as much as possible by sacrificing a little bit of profit if that's even possible.
My results are interesting although they would vary based on someone's average (which I think should be pretty standard on YGP)..
Take a look at this excel spreadsheet where I have collected my calculations.. you are warned though, as they appear to be far more complex than I initially thought they would be..
However besides the overflow of information you can pick specific spots that indicate something useful for you.
To me the most interesting part is the profit per month section(table) of it.
It tells me that for example I can achieve the same profit-per-month with 250 RRs and a 90 days renewal basis as with 150 RRs and a 365 days renewal basis.. and this can be achieved at almost half the renewal budget than the second option (250RRs x 90days = $120
vs 150RRs x 365days = $237.30). In case one extends the same amount of RRs (250) every 90days he will eventually end up with the same annual profit as another guy that extends 150 referrals for 365 days.. plus this minimizes the risk of losing more money when a site explodes, doesn't it?
It also gives us an idea of how low the actual profits of a PTC are, based on the investment required.. but hey.. it's still better than keeping money in a bank, isn't it?
I could go ahead and make the tables reach a higher number of RRs but I decided to keep it simple.. You can extend it however you want though.
Also, as clearly stated I have not included the recycling costs or the initial purchase of referrals just to give a profit strictly based on the renewal choices of the owner. It also doesn't have anything to do with payment processor fees as they vary and depend on wheter someone is reinvesting or putting fresh money in. So, it's a "simple" spreadsheet that you can freely extend as you wish.
I hope it helps someone out there.
YouGetProfit.com - Renewal Costs/Profits Strategy Options Spreadsheet:http://www.ptcbox.me/files/YGP-Calculations.xlsx