Part II - Expenses
After registering and before clicking on ads there are a few things you need to do. First, make sure to read and understand the Terms of Service (TOS). There are restrictions on the use of Neobux and you certainly would not want your account suspended down the road because you did no abide by the terms. Second, take the time to review your personnel information. Make sure to update your payment processor, so that you can get paid. Third, make sure that you have a good virus detector installed on your computer. Fourth, just click around to get familiar with where everything is. Read the Frequently Asked Questions (FAQ), the help page and spend some time on the forum. Finally, look for and be aware of when your advertisement clicks are reset every day. You can find the time on the View Advertisements page.
Earning money on Neobux is really quite simple. You click on ads, view them for the required time and Neobux credits your account with the value of the ad. When you accumulate enough money you can rent referrals. You earn more when your referrals click on ads. If you want to sign-up direct referrals, you must qualify first. That is, you must view a least 100 ads and be active for 15 days. You will get credit for all the ads that you view and you should have enough earnings to buy your first referral pack (3 @ $0.20 each) within the first month. The process is slow in the beginning, but be patient as the process speeds up as you go along.
There are many different types of ads and in the beginning it is important that you click on all of them to build up your earnings. The 4 golden ads are the most important. Clicking on these ads is required for you to get earnings from your referrals clicks. When you click on the golden ads, you get credit for your referrals clicks the next day. This is important because your referrals earn you $.005 for every golden ad they click on and view compared to $.001 that you earn when viewing your own golden ads. As you can see, the more money you earn, the more referrals you can rent, the more earnings you accumulate. The process goes on and on until you reach limits based on your membership status (more on this later).
Referrals are rented on a 30 day basis and must be maintained daily or renewed every 30 days. One way to maintain them (recommended for free members) is to turn the Autopay feature to "on." Essentially, what happens is that soon as a referral makes their first click of the day, you will be charged a daily rate to extend them one extra day. So, they actually pay for themselves each day they are active. If a referral does not click you won't pay for that day, but you will own that referral for one less day. If the remaining days fall below 20, Autopay is automatically iturned off and you will have to renew that referral when the 30 days are up. If everything goes according to the way it is supposed to work there should be no problem earning money from referrals. When a referral clicks on at least the 4 golden ads you make $0.02 for that day. That times 30 days gives you $0.60 - $020 (rental cost) = $0.40 or 200% profit for each referral.
If this all sounds too good to be true, well, it is. The reality is that your referrals are not going to click on ads everyday. Referrals that click 4 golden ads a day would give them a perfect average. Actually, if your referrals click at 1.8 average per day or better that would be considered good. So, what you need to know and watch closely is your break even point (BEP). This holds true no matter what level your membership. Below are several charts showing discount rates, total costs to extend referrals, cost per day applying discounts, and break even points. The longer you extend, the higher the discount and therefore, the lower the BEP.
First, the discounts for referral renewals:
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Total cost to extend: Referrals Autopay 15 days 30 days 60 days 90 days 150 days 240 days 0-250 N/A .10 .19 .36 .49 .75 1.12 251-300 N/A .11 .20 .38 .52 .79 1.26 |
Cost per day applying discounts:
Referrals Autopay 15 days 30 days 60 days 90 days 150 days 240 days
0-250 .0057 .0067 .0063 .0060 .0054 .0050 .0047
251-300 .0059 .0070 .0067 .0063 .0057 .0053 .0049
This is the same chart as above, but in terms of clicks (BEP):
Referrals Autopay 15 days 30 days 60 days 90 days 150 days 240 days
0-250 1.14 1.34 1.26 1.20 1.08 1.00 .94
251-300 1.18 1.40 1.34 1.26 1.14 1.06 .98
To get your BEP for any given day, go to the stats page and look for the chart called "Rented referrals clicks credited." Hover your mouse over any day and it will show you how many clicks were made. Divide that number by the number of referrals and you have the average amount of clicks for that day. For instance: 88 clicks/60 referrals = 1.47 average. This would be a profitable day with Autopay on since the BEP from the chart above shows 1.14 to break even.
As a free member, it is difficult to break even. Especially, when you get over 90 referrals. Those referrals that have not clicked everyday are not going to pay for themselves and will have to be renewed eventually. If you extend for longer periods of time to save money then you won't be able to buy as many referrals every week. So, what do you do? As I mentioned in one of my previous posts, there are several ways to earn and in the beginning you should do some of the other things to help build up your earnings. When you upgrade, your referrals clicks will be worth twice as much and you won't have to spend as much time doing the other things. Below is a chart showing approximately how long it takes per day to earn with the different methods.
View golden ads (required) 1-2 min
View other ads 8-9 min
View Adprize ads 10-12 min
Do Mini Jobs 45 min - 1 hour and 30 min
View videos (Neocoins) 5 - 10 minutes
Neopoint offers unlimited
Neocoin offers unlimited
In my opinion, after viewing the required golden ads you should spend your time viewing the rest of your ads and then do the Mini Jobs every day with any extra time you have. Doing so will give you extra money to rent referrals and to extend existing ones. There is a 300 rented referral limit for free members. So, to keep things moving I suggest that free members extend for no more than 30 days at a time.
Next let's talk about what to do with referrals that are not doing their part to help you to at least break even. Facts show that 20 to 30 percent of rented referrals are not going break even. This means you are losing money on them. There are many opinions on how long to wait and whether or not you should pay to recycle.
Neobux allows you to recycle (replace an existing referral with a new one) any time you want for a fee of $0.07. Otherwise, you can wait and they will give you a free recycle after 15 days of inactivity. So, what to do? Let's say that everything is going well and your referral's overall average is 1.8 clicks or $0.009 a day. Now let's say that you rent a referral and they don't click for the first 5 days and you are thinking about paying the $0.07 to recycle. If you do, you are paying $0.27 for that referral for the first 30 days. If the same referral clicks at an average of 1.8 for the next 25 days, you will make $0.225 for a net loss of $0.27 - $0.225 = $0.045. Instead, if you wait 15 days for a free recycle you loose $0.10 or half of the monthly rent of $0.20. Providing the new referral clicks at the rate of 1.8 for the remaining days you will make $0.135 for a net loss of $0.20 - $0.135 = $0.065.
There are other factors that play into this and each members situation may be different. For instance, is Autopay on or off? Was the referral extended for a long period of time? Is the click rate average higher or lower than the examples? Do you have extra money to recycle? The bottom line here is that you must pay attention to what your referrals are doing and take steps to keep the click average as high as possible. Once you reach 100 rented referrals, start extending them for 90 days or more until all of them are on an extended cycle or longer. Once they are, turn Autopay off. Then, start an aggressive recycle program following the chart below (suggested on the Neobux forum):
Inactivity Click Rate
3 - 4 days <=0.8
5 - 7 days <=1.3
8 - 10 days <=2.0
Recycle each rented referral (per above chart) no more than once a month as a free member. This may mean less money each week to rent new referrals, but the above approach should put you at break even or better. Finally, do not upgrade until you have rented the maximum of 300 referrals and have a good extension and recycle plan in place.
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