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.
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
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.
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