Working out rebills
 

Hi

Any ideas where I can find out what the value of multiple rebills is?

Ie. If I have 5 signs a day at $19.95 a month and the average retention is 3 months, how much would I get in month 5

Must be a spreadsheet around for working this out?

Thanks

Assuming your subscription price is $20 ...

1st month:
5 subs x 30 days x $20 = $3,000

2nd month:
$3,000 (new subs)
+ $2,000 (rebills of 1st month ... 1/3 do not rebill)
= $5,000

3rd month
$3,000 (new subs)
+ $1,000 (rebills of 1st month)
+ $2,000 (rebills of 2nd month)
= $6,000

4th month
$3,000 (new subs)
+ $0 (rebills of 1st month)
+ $1,000 (rebills of 2nd month)
+ $2,000 (rebills of 3rd month)
= $6,000

So in 5 months you would make $3,000 + $5,000 + 3 x $6,000 = $26,000.

Hope my math is correct :winkwink:

- Otto -

it isn't correct ... all surfers won't stay so long on your site, so in the 3rd, 4th and 5th will be much less rebills from 1st month ...

1/3 do not rebill? so 2/3 does rebill
is this true?

i think this is quite optimistic

Damian,

What I think you really want to know is how much you will make per month in the long run.

That is actually pretty simple: if the average retention is 3 months @ $20, you would - in the long run - make an average of $60 per new signup.
So 5 per day ($300 per day) would make $9000 per month.

In order to get there, you should probably allow a period of time of at least twice the average stay. If the average stay is three months, you won't have reached the above number in month 5 yet..

Of course, an average stay of three months is quite high nowadays..

Greetings,

Art

Otto,

Actually it is not. If the AVERAGE stay is three months, several subscribers would stay LONGER than 3 months.

In your calculations, NOBODY stays longer than three months, as shown in the quote above where in month 4 there are no rebills at all anymore from month 1.

The way you have shown it, the average retention is 2 months (one third one month, one third two, one third stays 3 months. Average: 2 months).

In that case you would get 2 months * $20 average income per signup = $40/signup. Per month that is 40 * 5 signups * 30 days = $6000 (which is, not surprising, your outcome).

For three months average the number would be higher.

Greetings,

Art