Total revenue per basic (TRPB) is the sum of total revenue divided by the number of registrations for a specific time period. It will help you determine how much you can afford to spend per basic.
Total revenue per basic tells you how much revenue, on average, each basic member generates. It is an important metric to determine, for each site and/or source, you can afford to spend when acquiring a basic member.
It is important to remember that different traffic sources and sites across different networks will generate different TRPBs, therefore it is important to look at this metric at a site level, or even more granular for each acquisition source and site combination, rather than portfolio-wide. This way you can work out a maximum cost you can afford to spend on each basic member across each of your traffic sources.
Please note, TRPB does not mean the average amount of revenue generated from each upgrade. This is termed average transaction value.
The formula to calculate TRPB is:
Total revenue / number of registrations
For example, if 120 people sign up to a dating site and the total revenue during that time period is £900 (your share) the TRPB is £7.50.
£900 / 120 = £7.50