That’s kind a topic about you may call for accounting guys or CEOs??? Well why excluding myself? Whats the difference from being a CEO or reaching that company’s decide mechanism, as long as I could handle these complicated management parts more than most CEO or accounting guy cant handle!!? Requires knowledge and experience to give some healthy solid decisions for company’s favor.
And that one yet opens the topic about ROAS and ROI as I put on title. There are formulas and methods for that calculation. They may also show some variation for some different businesses! But nothing is impossible with a nice platform to track them all.
Profit Margin: 77%
Cost Margin: 100% – 77% = 23%
Cost = $1432 (Conversion Value) x 0.23 = $329.36 (conversion valuenun %23 maliyeti)
ROI = (1432-329.36)/897 = 1.22 =>122% Return; $1 investment BRINGS $0.22
Profit Margin: 40%
Cost Margin: 100% – 40% = 60%
Cost = $1432 (Conversion Value) x 0.6 = $859.20 (conversion valuenun %60 maliyeti)
ROI = (1432-859.20)/897 = 0.63 =>63% Return; $1 investment CAUSE LOOSING $0.37
That was just one my sample I made for ROI and if we want to give results we should also little or more pay attention on these too right? So we will also know our own value for the company, or will learn what is our break even point so we can stick with it or try to survive with it. Also If we calculate those we can specify our most profitable bidding strategy as well. Otherwise how can we really know if we make company make or loose money.