Compounding means upgrading your account from your balance, or using your earnings to upgrade your account. For example, if you have an account of $100 and you earned $30 this month (assuming that a program pays 1% daily, it comes to 30% monthly - $30), at the end of the month you are given an opportunity to decide if you want to compound or get paid (or both) for that month. If you choose the last option, you will receive your hard-earned $30 and then you can continue surfing and earn another $30 next month.
But what if you decide to compound? You can upgrade your account with $30 and have a level of $130. So next month you will earn $39. Not much, but keep in mind that upgrades last 365 days, so you will be earning the additional $9 per month during 12 months, and that is $108!
Assuming that you have a $100 level account, lets see what you get if you compound every month during 4 months: (bear in mind that most autosurf program allow upgrades for $10)
After the first month you have a level of $130 and a balance of $0
After the second month you have a level of $160 and a balance of $9
After the third month you have a level of $210 and a balance of $7
After the forth month you have a level of $280
This little example demonstrates the Power of Compounding. Now you see that you can in fact earn more on paid to surf programs if using the compounding option. After the four months of compounding you will be earning $84 in month, instead of the $30 you were earning with a $100 level account.
If you decide to continue compounding for another 2 month, you will have a level of $470, paying you $141 every month. Now in the next 6 month you will make $846, before you initial upgrade expires and you can even earn more with your secondary upgrades.
Compounding produces extremely good results, but in this example you had to give up all the payments for 6 months. You usually would like to get the payout every month. So it may be wiser to use only part of your earnings for compounding. And that lead us to the most important principle of maximizing your autosurf earnings:
Try to compound half of your earning every month
Why only half? This is not a strict rule, of course. You can choose to compound just 30% of your earning or even less, if you don't have enough money in your balance to reach the payout for this month. You can also decide to compound 70% or more, if you want to accelerate your upgrade level. During the first month after the initial investment it's recommended to compound all, or a considerable ammount of your earnings to get a higher level that will allow you to compound just the half and still earn your monthly income.
With new programs it may be wiser to get your initial payment out as fast as possible and as soon as you have some trust in the program start compounding.
You will see that with compounding your earnings will grow very fast.
Michael Goldman is an online entrepreneur with several years of experience in Autosurf arena. You can see the programs he invests in and his autosurf related articles at his site Autosurf Best. The site provides the most valuable resources needed to make easy money online for just surfing the net.