ROI (Return On Investment) is your actual profit on your investment.
ROI calculations can quickly provide you with misleading information on an investment if the ROI calculation is not done correctly.
In online marketing, there is virtually not a single marketing expert, agency planner or ad salesman who does not use the term "ROI"or "ROMI". Usually wrapped in a lot of fast and fancy sales talk or industry talk. In their great hope that you perceive him as a professional marketing expert and that he probably is right. "that is why"we "chose these experts " to help us.
But, watch out now. There may very quickly disappear some important numbers when you get introduced to your ROI calculations, if your reports even contain any form of ROI calculations.
Many advisors "forgets" to do the actual calculations, and that can mean serious economic costs for your decisions when you need to evaluate every investment.
How do you calculate your ROI?
1. Your turnover minus your sales costs equals your gross margin.
2. Your gross margin minus your investment equals your profit.
3. Your profit divided with your investment equals your ROI.
4. Your ROI multiplied with 100 equals your ROI in %