Why did my referral average drop when I got more referrals?
I see a lot of post about averages dropping when either a users upgrades to golden or they pass a certain number of referrals.
I have two thoughts on the cause of this:
One is that when you first rent referrals, they all meet the active requirements for a referral to be rented and so you have rented a set of active referrals. Most users seem to join, click for a while and get bored with the slow progress and give up. Some of these never return, some of them try again sometimes several times. The result of this trend is that as the average “age” of your referrals increase, your referral click average tends to drop to some median value. Increasing your recycle rate should have the effect of decreasing the average “age” of your referrals and therefore increasing your referral click average.
The second is a common mistake made by people when they upgrade to golden. When recycling as a standard member, the average at which a referral is recycled is reflective of the members BEP. As a standard member, your BEP is higher as you only earn $0.005 per ref click as apposed to $0.01 when you have upgraded. Some people recycle referrals whos average is somewhere near their BEP. When the member upgrades, their BEP drops to nearly half with the result that many refs with a lower average are still in the profit range when they were not before the upgrade. Hence a lot of people lower the average at which the recycle referrals. This means they are keeping less “productive” referrals than before and results in their referral click average dropping.