To calculate retention you really need to figure out,
How many NEW sales in October 2006. 2 years ago. Then figure out the average months of recurring of JUST those October 2006 new sales. After 2 years it may be 2.5 months recurring average, and every month it may increase by .1 or .2, for those sales from October 2006. You cannot do a lump average with old and new traffic to calculate retention. You will spend years in the small time when you may have more retention than you thought and could afford to grow faster.
BTW you can hire me to consult on increasing profits
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