A good head for math?

[Almighty Colin]

Originally posted by RawAlex@Nov 23 2004, 09:31 AM
Colin, you forgot to put in a few important variables:

ProcessorVisaLosingFailureRate: Loss allowance for your processor suddenly losing all your recurring clients because of a visa / mc issue

Unpaidshavedadjustment: The number of signups or recurings that won't recur for the affiliate, but willl remain members of the site.

UpSellStiff: What happens when a members area upsell experiences one of the two above situations.

Etc...

Alex

Alex, read the question. I don't think it was meant to solicit a list of every possible cost and then add it to a comprehensive formula but rather just to create a"rule of thumb" considering the small set of variables (those of the type "time, number of customers, number of transations, $ABC and XYZ%).

If you had finished reading you would have seen that I wrote "If you want a more complete model just add more variables to the subtraction side of the equation for any other costs such as chargebacks and creditbacks which might effect one type of payout and not the other depending on how you do things".

You can add anything you want including % chance of a earthquake destroying your processor's facilities but that wasn't the question.