If you have a large portfolio of dating sites it can be difficult to determine which sites and brands to invest time in to achieve a good return on investment. Analysing a site’s initial revenue per basic (IRPB) is a fast and effective way to do this
For partners with extensive dating site portfolios it can be difficult to determine which sites and brands to invest time in to achieve a good return on investment. Analysing a site’s initial revenue per basic (IRPB) is a fast and effective way to do this.
It will help to determine how much initial revenue, on average, every basic member driven to a site generates. IRPB can help guide you when understanding how much you can afford to spend on a registration. However, as White Label Dating is a subscription based service, members continue to rebill and therefore total revenue per basic is a better figure to use to determine what cost is affordable for each registration.
It is important to remember that different traffic sources and sites across different networks will generate different IRPBs, 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.
Please note, IRPB does not mean the average amount of revenue generated from each upgrade. This is termed average transaction value.
The formula to calculate IRPB is:
Initial revenue / number of registrations
For example, if 120 people sign up to a dating site and the initial revenue during that time period is £380 the IRPB is £3.17.
£380 / 120 = £3.17
How to evaluate your portfolio using IRPB
- Download your key metric data at a site level for the last 30 days
- Rank your sites in order of their volume of registrations
- Add a column and calculate the IRPB for each site (initial revenue / basics)
- Highlight in green any sites or brands that have a high IRPB
- Highlight in red any sites that drive a high volume of registrations but that have a low IRPB
When you know which sites have a high or a low IRPB, here’s what to do next:
- Dedicate more of your acquisition spend and resource to sites with a high IRPB
- For sites with a low IRPB, look at the conversion rate and average initial transaction value over time to see if you can make any changes to improve it. For example:
- Increase the price of the site to bring in more revenue per transaction if the price is low and the conversion rate is very high.
- Make the site cheaper to improve the conversion rate - sometimes a larger number of slightly cheaper transactions adds up to more than the starting conversion with higher transaction values.
- If IRPB remains low after it has been optimised you should reduce spend and effort on a site and move this to a site that has greater potential and greater return