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Investment
ROI
Return on Investment — how much profit you make relative to the amount you spent or invested.
Basic ROI = (Gain from Investment - Cost of Investment) / Cost of Investment × 100. In online business, calculate it for campaigns, products, or even time spent. Long-term ROI (like brand building) can be harder to measure but still matters.
Always factor in all costs for accurate numbers.
It's the report card for your money. Spend £100 on ads and make £300 in sales (after costs), your ROI is positive and healthy. Negative ROI means you're losing money on that activity.
Real world: A creator spends £500 on a sponsored video production and earns £2,000 in affiliate commissions. ROI is excellent. Tracking ROI on different ad platforms or products helps decide where to spend more budget.
💡 Positive ROI is the goal of every smart business and investment decision — track it relentlessly to improve results.