[ Sponsored Links ]

Advertise here »

ROI calculation

reply to message » post a new message » e-mail to a friend »
Subject:  ROI calculation
Author:   Woolly:   view profile | all posts by this author | add to favourites
Date:   09:47:40 26 January 2007
 

Hi

I'm currently doing a bit of keyword analytics. Despite making a profit when I look at my results using two ROI calculations below I get what looks like a really bad result. Am I doing the correct caluculations? What are these results telling me?

 If I use the profit ROI [profit-cost/cost*100] I get a lousy -£75.46 where as if I use revenue ROI [revenue-cost/cost*100 I get a result of £24.54.

Many thanks

Woolly


 




 
« Back to Internet Marketing Forum Next Thread »
  • ROI calculation, Woolly, 26 Jan 09:47
    Hi I'm currently doing a bit of keyword analytics. Despite making a profit when I look at my results using two ROI calculations below I get what looks like a really bad result. ...
    • ROI calculation, danielb, 26 Jan 11:16
      hi, Woolly, how are you? What information are you trying to find out & how do you plan to use it? Thanks a lot, daniel ...
    • ROI calculation, Woolly, 26 Jan 13:30
      Hi Danielb I've heard a lot about the advantages of ROI but I have never used it before. I would like to apply it to see if we are getting a good monthly ROI - per search engine ...
      • ROI calculation, danielb, 26 Jan 16:12
        hi, Woolly, in that case I think you're probably best off doing it based on profit vs costs. to do that, the formula you're using would work. it's probably just a case of missin ...
        • ROI calculation, Woolly, 26 Jan 17:01
          many thanks - I think this will help alot. ...
          • ROI calculation - A good result...???, AndrewSmith1, 27 Jan 11:10
            Personally I think any result which gives you at least a 300% ROI (Thats return on investment, hence we are talking about revenue, not profit). 300% percent would indicate that you ...
            • ROI calculation - A good result...???, Woolly, 27 Jan 15:07
              Andrew - I'm just wondering if you are doing the calculation correctly in excel. i.e. If I do the calculation below, where Z14 = 5000 and AA14 = 4000, I get a % of 25.0 - cell f ...
              • ROI calculation - A good result...???, AndrewSmith1, 27 Jan 22:47
                ROI is calculated automatically in Google Analytics. I've never calculated any ROI figures myself since I don't have a need to. ROI is calculated in the following way: ROI is ...
                • ROI calculation - A good result...???, AndrewSmith1, 27 Jan 22:48
                  Sorry, that should be 3700% not 3500. On 22:47:21 27 January 2007 AndrewSmith1 wrote: ROI is calculated automatically in Google Analytics. I've never calculated any ROI figu ...
                • ROI calculation - A good result...???, AndrewSmith1, 27 Jan 22:52
                  The ROI in your example would be =(5000-4000)/4000 = 25% ============================= Sorry, that should be 3700% not 3500. On 22:47:21 27 January 2007 AndrewSmith1 wr ...
              • ROI calculation - A good result...???, DeriJones, 2 Feb 18:26
                the error you're getting there, is in the way Excel handles percentages. When you select Percentage format for a cell, Excel understands that to mean that 1.0  represents 100%. ...
            • ROI calculation - A good result...???, DeriJones, 2 Feb 18:46
              bad and wrong.  ROI is based on profit  not revenue. Example: Mtg costs £500 Increased sales £10K Sounds like a good numbers if you base 'ROI' on those But - if your ...
              • ROI calculation - A good result...???, AndrewSmith1, 2 Feb 19:54
                I think you'll find that I clearly state "Taking 3 times marketing costs" when defining ROI. This effectively means that you are working with an average markup, and receiving/turni ...
    • ROI calculation, MilesWoolgar, 27 Jan 12:28
      Many Thanks Adrew for the good advice ...
« Back to Internet Marketing Forum Post a new message »
Subscribe for only €299