Today's lesson: how he knew when ads would pay off
New here? Recurring changes the ad math, so let's count it. An affiliate paid $5 per sign-up using small ads for a tool that pays him $3/mo recurring.
1. Month 1, he's down $2 per customer ($5 spent, $3 earned). Looks like a loss.
2. Month 2, that customer pays again: +$3. Now he's ahead by $1.
3. Every month after is pure profit for as long as they stay.
His break-even point was under 2 months. With customers staying ~10 months on average, each $5 spent returned about $30.
In plain English: with recurring, an ad that 'loses' on day one can be very profitable by month three.
Try today: take any traffic cost you pay and divide it by your monthly commission — that tells you how many months until that customer turns profitable.
Forever Payouts
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Today's lesson: how he knew when ads would pay off
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