ROI – Return On Investment

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Return On Investment

There are many things to learn when you are starting a new work at home opportunity (or joining one). Whether it is online or offline, one of the major things to learn is ‘what is ROI (return on investment)? This can help you determine many things while doing business, whether it be investing in a Ebook, video series, funded proposal, autoresponder, or any number of things for your business.

ROI is also called rate of return (ROR) or just return. ROI is a phrase used to describe how much money an investor gains or loses in comparison to how much money they invest in something. If you have invest $100 into a company for example, and you get $5 from that investment, this is considered a 5% ROI. This information can be useful when considering how much money to invest into a business or other opportunity.

While this is a vague answer to what ROI actually means, there are other things to pay attention to while looking at this. The amount of money gained on a lower percentage ROI may be more than that of a higher percentage ROI. It is all dependent on how much money you invest in the opportunity in the first place. For example, A 20% ROI on an investment of $100 is $20, while a 5% ROI on an investment of $1000 is $50. You are getting more money in return on the 5% ROI, but you had to invest more initially.

ROI can also have a negative effect on you. When you invest in a new business, there is no way to be 100% positive that it will be profitable for you. Most companies lose money when they are first started, after all. This can lead to a negative ROI. If you invest $1000 into a company, for example, and it loses $50 additionally, that would be a -5% ROI. The negative ROI can end up resulting in you needing to put more money into the business. Looking at a business’ general ROI can help you determine whether or not you should invest to begin with.When deciding which work at home opportunity to invest in, try to find one that has a proven track record if you can.

While knowing what ROI is, not all situations can be measured in percentages and money. Sometimes, investments are made for personal reasons or other important issues to you as a person. ROI is not the only factor to consider when investing, take everything into account before you jump into anything.

As an online marketer, the best ROI is to build your own responsive email marketing list. Email brings in over $43 for every dollar invested (source:DMA) making it a highly valuable marketing channel.

The leading email autoresponder service is Aweber.