Status: Profitable
Deposited: $10
Current Balance: $52.99
Profit/Loss: $42.99 profit
Assets: 123 referrals, Golden membership
Since I upgraded to golden membership I’ve had a couple of good weeks on the minijobs. This has given me enough cash to rent 50 more referrals, putting me into what should be the profitable phase.
So now it’s time to take a look at whether it is actually profitable. I'm going to look at the first five full days after I got my last bundle of new referrals (so I’m comparing like with like) and see how the numbers stack up.
I’ll be looking at three key performance indicators: Turnover, profit and income. These will form part of the heading in future posts.
I’m only looking at the money generated by my rented referrals, so I can see whether this aspect is profitable. (It’s fairly obvious that personal clicks and mini jobs are 100% profit)
Turnover
Turnover is simply how much money is coming in each day. I get one cent per click, so this is fairly easy to calculate.
Total income over 5 days: $4.09
Average daily income: $0.818
So my balance is growing by a little over 80 cents a day, which is nice. This doesn’t mean I have 80 cents a day in my pocket though, some needs to be held back to cover costs.
Profit
Profit is the key point of doing all this. It’s a measure of how much better off I am each day and is calculated as turnover minus costs.
Costs are variable and based on assumptions about the price of extending my referrals and the cost of membership. I’m going to look at three scenarios: Best case, worst case and a middle path.
The worst case is that I pay full price for my golden membership ($90) and never extend on a promotion, so I pay the full $1.12 for 240 days.
In this scenario my daily cost is $90/365 + $1.12*no of refs/240 = 82.1 c/day
In the worst case scenario, I’m losing a quarter of a cent a day, so I still need a few more refs to spread the cost of that golden membership.
The best case is that I get free golden membership (from adprize or points) and extend all my referrals on promotion days at $1.09 for 240 days.
In this scenario my daily cost is $0/365 + $1.09*no of refs/240 = 55.9 c/day
This means my profit is 26 cents a day.
The middle path assumes I get my golden membership on a promotion for $75 and extend some referrals on promotion days, so I average $1.11 for a 240 day extension.
In this scenario my daily cost is $75/365 + $1.11*no of refs/240 = 77.4 c/day
This gives me a little over 4 cents a day profit.
Realistically, I’m probably going to hit somewhere between the middle path and best-case. I’ll always take as much advantage of promotions as I can and I ought occasionally to get a free gold membership.
So there it is, actual profit being made. Not just theory any more, more coming in than going out.
Income
The final stage is income. How much of this money is finding its way into my hands?
None.
Right now, I’m reinvesting all my profit, so that the profit can grow. I have no intention of taking income for quite some time. In principle, I won’t take anything until I’m renting as many new referrals as often as I’m allowed, then I’ll take whatever remains as income. In practice, I might lose my bottle and take a few quid here and there before that point. Only time will tell.
In summary:
Turnover/day: $0.818
Profit/day (worst/mid/best): -$0.003/$0.04/$0.26
Income/day: $0
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