ROI

$100 Ads Purchased = $100 Check from Affiliate Network

  • 0% ROI

    Votes: 381 87.4%
  • 100% ROI

    Votes: 55 12.6%

  • Total voters
    436


Maybe we should start calling ROI, POI (Profit on Investment).

I see both camps thoughts on ROI.
 
If you buy $100 worth of ads from Google and your check from the affiliate company is $100.

Is your ROI 0%
or is your ROI 100%

Rate of return - Wikipedia, the free encyclopedia

for all you people who voted 0%



if you read the "returns when capital is at risk" section, you'll see its consistent with the way ROI is discussed here. We always include initial captial investment and nobody in AM talks about "cash flow"
 
if you read the "returns when capital is at risk" section, you'll see its consistent with the way ROI is discussed here. We always include initial captial investment and nobody in AM talks about "cash flow"

I guess it comes down to whether you use net profit or gross income as your RETURN
 
Oh holy hell.

The formula to calculate ROI is:

ROI = (return on investment - initial investment)/Investment * (100)

So in this example, $100 spent, $100 made back, $0 in profit.

ROI = (100 - 100)/100 * (100)

(0) / 100 * (100)

= 0% ROI.

Let's take another example. You spend $100 and only make back $50 (in other words, a $50 loss).

ROI = (return on investment - initial investment)/Investment * (100)

(50 - 100) / 100 * (100)

= (-50) / 100 * (100)

= (-0.5) * (100)

= -50% ROI.
 
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This thread teaches me that not everyone who says "I AM MAKING 100% ROI" actually is

*The More You Know*
 
I've wanted to ask this before but was afraid of looking like a retard. I always assumed you had to make back what you spend to get to 0% but am never really sure what formula others are using when they mention ROI.
I like Rage's POI idea.