what is your ROI like ?
- Thread starter 99luft
- Start date
lololol @ 100% roi does not = doubling... we going to have this argument again
You can have a negative roi so.... 0% is breaking even its spending 100 and making 100 in revenue leaving you with 0 gross margin...
if you spend 100 revenue 200 leaves you with a gross margin of 100... essentially doubling your money which in this case = 100% roi... you spend 100 and got an extra 100...
simple formula
ROI = ((Total Benefits - Total Cost) divided by Total Cost) multiplied by 100
ROI = ((200 - 100)/100)x 100 = (100/100) x 100 = 100%
ROI = ((100 - 100)/100)x 100 = (0/100) x 100 = 0%
ROI = (( 0 -100)/100) x 100 = (-100/100) x 100 = -100%
end of discusion on what ROI is
You can have a negative roi so.... 0% is breaking even its spending 100 and making 100 in revenue leaving you with 0 gross margin...
if you spend 100 revenue 200 leaves you with a gross margin of 100... essentially doubling your money which in this case = 100% roi... you spend 100 and got an extra 100...
simple formula
ROI = ((Total Benefits - Total Cost) divided by Total Cost) multiplied by 100
ROI = ((200 - 100)/100)x 100 = (100/100) x 100 = 100%
ROI = ((100 - 100)/100)x 100 = (0/100) x 100 = 0%
ROI = (( 0 -100)/100) x 100 = (-100/100) x 100 = -100%
end of discusion on what ROI is
I beg to differ. You can't assume ROI is a positive gross margin because ROI is closely tied to net profit.
Gross margin is the difference between the sales and the production costs excluding overhead, payroll, taxes, and interest payments.
So, if you exclude calculating paying for content/having VAs write it or do work for you, then you are grossly (pun not intended) over calculating your ROI.
ROI should only be calculated using NET profit, the amount of money left after all costs and expenses have been deducted.
Yes, you can do a simple profit/loss ratio to get ROI, but it's very misleading. That's why net income/loss is the better indicator.
You're over complicating things, and that's coming from econ alum from a top three school.
100% ROI means that your earnings are equal to your initial investment in other words a 100% Rate of Return (interest's quantified value is equal to principal's initial value). If we're calculating single period arithmetic return as interest and we said that said ROI was annualized at interest that would be 100% interest (APY).
To dumb it down:
If you were issued a certificate of deposit that matured in exactly one year (1y CD) and it was issued at a standard offering of 100% APY at a face value of $100 dollars...
[excluding any fees or penalities]
After one year you would of earned $100 in interest.
$100 in interest plus $100 in principal equals $200.
Since $200 is double $100 doesn't take Mr. Wizard to figure out what just happened.
And you CAN assume ROI is positive.
If someone says 100% ROI that's = +100% (as is positive ROI)
This is why people need to stay in high school.
Smart asses are generally dumbasses.
I'm just pointing out that you shouldn't be measuring ROI with anything with the word "Gross" in it because it hasn't had all the liabilities deducted yet.
It's better to use NET. Someone reading this thread later will start using gross and then wonder why they are losing money (even though those people have other things they should be worrying about if that's the case).
It's better to use NET. Someone reading this thread later will start using gross and then wonder why they are losing money (even though those people have other things they should be worrying about if that's the case).
Reinvesting profits ?
so a while ago, I started with a small amount, and seeing good returns. Much better than trading futures or buying some shit stock. So much better that I am having my natural doubts whether this could be consistent. Why are returns so much higher for IM than financials ? For example, if you invested $1000 in IM, I bet some of you could make several times that amount easily. Yet, the same amount invested in stocks or mini futures is far more risky and returns are much smaller.
Is it possible that if I keep reinvesting the profits from previous campaigns, that I could continue to see a fairly positive slope in profits ? At what point would you stop seeing positive returns ?
What are some pitfalls in running campaigns on Google Display network ? Only thing that is apparent is competition.....there's seems to be no shortage of demand for certain CPA.
but I mean if you discovered handful of untapped sites, and you owned the inventory, wouldn't you continue seeing consistent positive ROI ?
Internet marketing is quite interesting, I want to take a much more quantitative approach to it using various models any suggestions on such topics ?
I don't know how SEO works so paying for traffic I am okay with and usually reinvest 50% of the earnings back into new campaigns.
so a while ago, I started with a small amount, and seeing good returns. Much better than trading futures or buying some shit stock. So much better that I am having my natural doubts whether this could be consistent. Why are returns so much higher for IM than financials ? For example, if you invested $1000 in IM, I bet some of you could make several times that amount easily. Yet, the same amount invested in stocks or mini futures is far more risky and returns are much smaller.
Is it possible that if I keep reinvesting the profits from previous campaigns, that I could continue to see a fairly positive slope in profits ? At what point would you stop seeing positive returns ?
What are some pitfalls in running campaigns on Google Display network ? Only thing that is apparent is competition.....there's seems to be no shortage of demand for certain CPA.
but I mean if you discovered handful of untapped sites, and you owned the inventory, wouldn't you continue seeing consistent positive ROI ?
Internet marketing is quite interesting, I want to take a much more quantitative approach to it using various models any suggestions on such topics ?
I don't know how SEO works so paying for traffic I am okay with and usually reinvest 50% of the earnings back into new campaigns.
