Guys, my brain is stuck at such a simple issue rn.
I'm having problems understanding ROI.
Lets say I got 1k on my my bank account, I invest all of that 1k into advertisment. After a few weeks, I made 2k in revenue by promoting my products via the ads. So I got a 200% ROI right?
Well, but I spend 1k on the advertisment, which means only half of that 2k is profit which means I only made 1k.
So I have the same capital as in the beginning but the number on my bank account is higher. How?
I don't know why but I can't understand it.
1k in beginning.
2k in revenue.
2k revenue - 1k spendings =
1k
JUST AS IN THE BEGINNING, HOWWW??
>>1975276
That's a 100% return anon....you made back your investment (what you put in)..
Either troll or literal retard.
>>1975278
First I had 1k on my account.
Then I had 2k.
The number is higher.
THE NUMBER IS HIGHER.
>>1975294
simply making back the 1000 you put in is breaking even, your 2k was a 100% profit
My brain hurt trying to emphatise with you OP, but well. The last 1k you mentioned is the profit. You don't have the same capital as in the beginning, because in the beginning you had 1k, and now you have fucking 2k. 2k is the money you have. 1k is the profit.
SO YOU HAVE THE INITIAL 1K PLUS 1K MORE YOU FUCKING MORON
>>1975312
Also I feel stupider from having read this thread :(
>>1975276
ROI is a percentage of earnings on your initial investment. you sink in 1k and get back 100 dollars that's a 10% return obviously. your ROI can be negative as well so if you lose 100 on that 1k initial investment your ROI will be -10%
>>1975276
I'll try to help you OP. ROI is PROFIT / cost.
Starting with $1,000. If your final bank account looks like:
$0 roi: -100% (lost everything)
$1,000 roi: 0% (made nothing)
$1,500 roi: 50%
$2,000 roi: 100%
$3,000 roi: 200% (profit was twice the starting capital)
hehe guys,
I.. I just w- was trolling!!!
YOU ALL TOTALLY TOOK THE BAIT amirite?
guys?
>>1975341
le master trolle strikes again xD
Reading this thread makes me feel slightly better about my failing business ventures
>>1975445
just wait until you're successful and it will be even better because you won't need to look down on someone to feel accomplished
>>1975276
Just give up and go flip burgers, OP. This is not for you.
>>1975727
S-Shut up!!