Quote:
Originally Posted by harvey
If you don't retain, your rebilling will decrease as well, I explained that above. Your retention/rebilling rate will be within a certain ratio, no matter if some of your members rebills for 10 years or 1 month or never, they will be included within that ratio. That's why I used amount of members to ease visualization, the numbers will include those rebilling for years as well as those not rebilling at all.
And I choose 51% because I tried to demonstrate that you need 1% over the "amazing retention rate". Just 1%. Do you know any company working towards that 1%? I mean, it's just 1%! There might be a few, but I don't know of any so far.
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100 sales, 25 rebills. (25% rebill rate)
100 sales, 25 rebills + 12 from the previous month.
100 sales, 25 rebills + 12 + 6.
I now have 43 members.. Real retention is 25% per month, total members to monthly sales, it's 43% at the end of 3 months.. and with all sales it's 14% retention. So breaking it down, per month, 3 months, cycles of months, daily, money.. it doesn't make a difference..
The member base is growing...
As long as you are adding sales, your retention ratio can be like 5% and you will still grow, because to calculate or even show an example of retention ratio, you have to factor in the compounding rebills and time.
Quote:
Originally Posted by harvey
The numbers of Robbie regarding some sponsors show you that no matter what, if you don't retain you don't rebill. He's talking about 70% and 90%+ drops, since he's on revshare, the same numbers will apply to the sponsor (at least on that given account). Again: This time I'm not even talking about growing 1%. I'm talking about shrinking 50%+ exponentially!!!
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What Robbie is talking about 100% directly is related to the volume of sales he sends in and has NOTHING to do with the actual retention ratio of the site. He stopped sending sales, it's 100% fact that rebills will bomb after a period of time.