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Tuesday, July 20, 2010

HOW IS IT POSSIBLE TO MAKE MONEY ON NEOBUX?

Okay, since this is a topic in the back of everybody’s mind, I feel it’s important that it’s discussed. At least insofar as I’ve come to understand it through research of my own.

This topic will be broken up into two parts:

1) How does Neobux make enough money to stay afloat?

2) How do I make money with Neobux?

How does Neobux make money? Answer is: I don’t know! At least, not entirely. :P

See, like any other business, the Admin has secrets about how he accomplishes the amazing figures (as seen by the“Trivia” post by him) that we’ve see. Yet this should not discourage you because, at least in a limited, superficial sense, it is possible to glean some rudimentary understanding of the dynamics at play in the underlying processes working behind the scenes.

Here’s an example of what I’m talking about - A post from a user in the problems and doubts section of the forums:

“I’ve just been running some numbers through my head to determine if the money paid by advertisers pays all the people involved plus the admin.

However, I figured it costs an advertiser about $0.016 per view. Automatically $0.01 goes to the person viewing the site, leaving $0.006 left. If that person was referred by another, and they are golden, then they should be earning $0.01 of the total amount. But I don’t understand how this can be, when there is only $0.006 left over.

I realize upgrades could help pay for this. But I would think it would be made so the Admin of the site wouldn’t have to pay out of his own pocket to fill out the extra $0.004 to the user.

Can anyone help explain how this all works”

Now, before we proceed with the second part of this thread I’m referencing, what can we glean from this post? Nothing! Absolutely nothing! Because we have virtually no way of knowing what exactly goes on behind the scenes, no amount of armchair analysis can give us a complete and total view of the picture. This is not to say, however, that what such attempts conjures up (as evidenced by this user’s conclusions) isn’t troubling, especially from an investors point of view. Therefore its important that we constantly sizing up the admin and search all his posts for information he may or may not intentionally give away when he answers posts such as these. So continue to read on further!

A few users respond to this post as follows:

“First of all not everyone is golden so the grand total will never be 2 cents on average.

second of all we need to pay to rent referals wich covers the majority of money made by us on referals (not counting the direct referals)

third there are recycling costs, wich should basically cover the rest of the cost made by neobux.

the upgrades will mostly be used to pay for servers and bandwith i think.

This is just an educated guess, i have no facts to build on, nor do i want them. I simply dont care to know the details. If admin gets rich by us, good for him, he deserves it. if not, we at least dont have to worrie he will get poor by neobux, trust me, he makes a buck or 2″

So essentially, this person’s argument is that, at the very least, things such as recycling, referral renting, upgrade packages, etc, work to keep in a status of “maintained as is”, meaning it’ll sustain itself insofar as it stays where it is in terms of size, etc. Money going in = the same as money going out. Now, of course, this shouldn’t exactly alleviate concerns as most run of the mill ptc sites make use of the same features and thus are able to stay up some months to even half a year before going scam. At the very least, sustainability “as is” does not necessarily guarantee “growth”.

Which brings up the next post:

“Paid to click ads, banner ads (forum and elsewhere), recycling, renting referral payments, extending referral payments are just some of the avenues of revenue for Neobux.

Don’t worry, he’s covered his “hot dogs”.”

Now, I must admit: this is something I’ve been completely unaware of, and only have just read about this since doing research for this topic/post i’m writing (as we speak, haha). I (naively) thought advertising consisted of mainly paid of click campaigns and clickbank/commissions. After reading this, the understanding of other types of advertisements serves to further diversify the Admin’s ability to attract advertisers, and thus spark up revenue. So -1 me, +1 admin it seems, lol (although I’m not trying to “beat” the admin or anything, haha).

Further elaborating on this diversification of advertising types is a post in a topic where another user attempts to articulate the same argument as the one in the previously mentioned topic:

“It makes money from advertizers - The paid by click is one form of advert - the site sells different types.Also, the site uses fixed ads (the ones that never expire) those are affiliation ads and also the site earns from commissions / purchases made through those affiliate ads (forex for example). But you also have referrals, renting, upgrades, recycling, etc, which probably is used to fund a reserve to assure instant cashouts.

Essentially neobux is all about advertizing, and without it, you can’t run a site like that unless you are a ponzi! (100% self sponsored ads for example).”

After reading these two posts, personally speaking (if I may make a cheezy video game type reference), my confidence was booted by a couple stat points.
Now, lets analyze the admin’s posts in these threads hereand here:
“And I thought that standard member’s referrals are only credited $0.005… and wait… there are sooo many members without referrals…
This equation is composed of many variables.”

“If that was so simple, any kid could run a PTC… Wait! They do run PTCs… Ok, rephrase it to “could run a successful PTC”.”

From this the conclusion is unavoidable: the Admin is quite the asshole. LOL no, I kid. ^^ This is just a pattern present in virtually every post the admin makes: you always get the sense that there is a layer or two of information the admin doesn’t quite let slip from his lips….not in order to deceive, but certainly to keep a strict flow on the free flow of information about his business. This makes sense, because globally speaking, activity rises and falls with each word that he utters (See, for example, discounts he gives, or when he announces new changes and the like), so it’d be an important thing for him to keep a close watch on what he says. Is this a good or bad thing? I don’t know: You be the judge. However, personally I think its 3 parts sound business management (meaning I would operate the same way in a similar circumstance) and 1 parts unknown (meaning there’s still an element that could turn up to be anything, hence: unknown).

However, as we will see, the Admin DOES release information though (of certain kinds).

Top

How do *I*, as a Neobux user, make money? Well, this is something I *do* know. =3

First, I’ll start off a few posts from the admin, in order to set the foundation..

“You only have 3 referrals.
I know for experience that if you choose a PTC with bots they will click like crazy but you may lose all your money.
Two choices you need to make:
1) Slow but steady and true.
2) Fast but dangerous and false.

If you choose option 1 you’re welcome to stay.
If you choose option 2 then I wish you can afford to lose wherever you go.”

See in this thread here.

“Go slow. “Fast money” doesn’t exist nor can an established business like our guarantee such.
We do guarantee stability but at a pace. Basically you (and all other users) earn from real dividends. Not fast as robbing a bank (pardon the example) but secure as a monthly salary.”

See in this thread here.

From these two posts, the Admin here demonstrates the basic outline of how money is made in Neobux and how stable this structure is. You can kind of think of the Admin’s business secrets as part of what makes Neobux stable, coupled with Neobux’ size (members), the various advertisement methods and incitements, as well random contests and discounts, and of course its popularity. This stability is vital to anyone interested in making use of the basic structure of earning (because it relies on stability, as I’ll explain shortly). This stability is further aided by the structure of community the Admin has set up (ie on the forums), especially with his announcement of rewarding forum activity/helpfulness (ie with money). Even me writing this blog here is part of this dynamic, as it vicariously helps me through helping the community through helping you by sharing what I’ve learned here. ^^ I’d reckon out of all of the parts that contribute to Neobux’ stability, the shared sense of community probably is one of the greater parts.

Now on to the basic structure of how one earns on Neobux. Simply put, as the Admin said in the above cited post, we earn through mainly our referrals. You can, of course, earn solely through advertisement clicks (and to a minor degree, people who’ve upgraded like myself earn up to 30 to 40 cents a day from the ads alone, with ultimates getting 15 guaranteed ads @ 2 cent per), this is not particularly exciting nor can there be any growth; it’s a flat rate of earning and a very little one at that. A lot of people click to earn enough to rent referrals on their own and slowly build up that way from nothing (no investment). This works too but of course if you’re like myself (an impatient bastard), you’ll simply invest. Of course, this is no easy matter to approach: when I invested, I spent about a week straight of doing research (and this was after I had already upgraded to golden membership, which had its own period of researching and what have you). However, this is by far the predominant way to make money off of neobux.

Essentially, how earning on Neobux works is this: there is a certain important average pertaining to matters of Profit, Loss, and breaking even. Profit is essentially anything you make above and beyond maintainence costs (including and taking into account golden membership (and pack, if you have one), referral renewal prices, and however much you spend on recycling, as well as other miscellaneous expenses (like, for example, if you let a referral expire, which costs you money). This magic average is in constant flux and is determined by factors such as how long you renew your referrals for (ideally, it should always be for 90 days for the 20% discount), how much you paid for your refs (the more you have, the more they cost to rent initially), how much you recycle, etc. When you go to your stats page, you’ll see something called an “R.Average” (or at least I think you do….You might have to install Kwah’s script to see it, I dunno xD ). This average takes your rented referrals average and couples it with your direct referral averages (which is pure profit if you didn’t pay to advertise in order to get them) and balances it against how much money you spent to recycle. Essentially, it becomes your REAL average, after taking into account recycling, which you then use to base your calculations on whether or not you did well that day. Anything above and beyond your “break even” averages is pure profit. See my post about break-even averages in order to get the skinny on what those are.

Now I’m no mathematician here (and don’t fault me if my math is bad lol) but because of this “break-even” average, only a certain percentage of your daily income can be counted as “earnings”, and because your income is determinant on how many referrals you have, the conclusion is obvious: the more referrals you have, the more you earn. This is of course predicated on how well you manage your account, so check out my post about the magical, secret, wonderful, ALL ENCOMPASSING STRATEGY here.
Using myself as an example, here are my stats for yesterday:

[ Yesterday ] - Net : $14.330
- Income
- Rented : 1473 / $14.730
- Direct : 4 / $0.040
- Expenses
- Recycle : $0.44
- Autopay : $0.00
- Renew : $0.00
- Stats
- Rented avg : 1.035
- Direct avg : 4.000
- R.Average : 1.006
- Totals
- Income : $14.770
- Expenses : $0.440
- Net : $14.330

Even though I netted $14.33 in income, that’s not all profit. As of right now, with 1423 refs, going by GrTaMaster’s thread on averages, I would need about 0.62 daily average in order to break even (maintain what I have). Since my REAL average was 1, I essentially made 0.38 of that as profit. The equation goes something like this.

1 (real average) - 0.62 (break even average) = 0.38 profit

1423 (number of refs I have) * 0.01 (earnings per referral click. Standards = 0.005) = 14.23 * 0.38 (profit) average) = $5.40 (pure profit!)

That’s not particularly much, but it ads up and can go even higher if I break 1 (which is easily feasible, since on occasion I get averages of even up to 2.5). I’m currently aiming to reach around 2k-2.8k refs in the next two weeks.

Basically, for each ref you have, you skim off a fraction of a cent, to cents itself, and with hundreds and thousands of refs, this ads up to the profit you see today. Scary thing is that some people earn a lot more then this, upwards to some even boasting of $2500 a month of income(*cough*reggen666*cough*), which is PURE profit. I’ve even heard of soem people having upwards of 27k refs (try plugging that number into the equation!).

So what’s the tl;dr (too long; didn’t read) version? If you want to earn fast, invest, if you want to earn more, you need more referrals. This is, of course, a very simplsitic way of viewing it and there are thousands of variables affecting earnings at any given moment in time. However, as you can see, I’ve already taken the plunge (with about $1300 usd invested thus far) and I’m confident that it will pay off. If anything, this information can serve to temper your understand of exactly how is it Neobux has become the beast of a machine it is now. ^^

Cheers!

3 comments:

success formula said...

select a good strategy to make profit from neobux ,follow it and see you are in gain or not.Then use referral analyser software available in net

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