Calculating Earnings

Working out what your profits are, can be difficult when you are renting. You must account for renting costs and any recycling cost that you incur and also the cost of any upgrade that you have. What that means is, although you may be earning $1.00 a day from your refs, this is not actually the profit.

The profit is just the earning minus the costs, so, just working with the initial renting costs and no recycling, the profit is more like earnings ($1.00) – costs ((100 x $0.20)/30 days) = $1.00 – $0.67 = $0.33 per day. Now if you regularly recycle refs .. for example 3% per day, then recycling costs are $0.21 and total costs become $0.88 and profits drop to $0.12 per day.

The above calculation was based on a click average of 2.00 from the example in the main page. However, you will not always get an average this high. It depends on your referrals and your recycling strategy.

You might ask “why would I recycle if it uses up so much of my profits?”. Well, the cold hard truth is that a lot of members join, try it for a while and then get disillusioned by the lack of money made and quit, hence your average quite often drops off over time. This is where a good recycling strategy comes into play, and by spending a little on recycling you can improve your average and actually have better earnings.