Mistake: blending monthly and annual signups into one ROAS
Everyone celebrates a fat average commission. Then they realize half of it came from annual plans that won't renew for a year — and the monthly crowd is already churning.
Why the blend deceives:
— Annual signups pay big upfront commission and inflate your average.
— Monthly signups are where churn lives, and they're the majority of volume.
— One average number hides two completely different economics.
Fix: split your reporting by billing term. Calculate payback and retention separately for monthly vs. annual. You'll often find annual is your only real profit and monthly is a leaky bucket you're funding ad spend into.
Verdict: an average across two species tells you nothing about either.
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Mistake: blending monthly and annual signups into one ROAS
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