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What's your ROI? (23)
06-21-2014 12:30 PM
#1
jerryh2cpa (Member)
What's your ROI?
ok, I've in adult marketing for 3 months, currently I can spend $3k - $4k per day, but the ROI is pretty low, less than 20%,so the profit perday is about $600, I don't think it's good, but I tried a lot of methods, like to get pay bump, direct work with advertiser, create different landers and banners for different sites, advertiser in lots of traffic sources, but the whole ROI is less than 20%. I don't run US campain, but UK,AU,CA,DE,FR,IT and some more tier 1 countries.
I don't know your guys ROI, but when I'm doing mobile app, the ROI is higher than 50%, I want to beat $1k profit at next month, so pls help me out.
06-21-2014 12:51 PM
#2
angry old lady (Member)
typically shoot for 50% overall
06-21-2014 01:20 PM
#3
jerryh2cpa (Member)
it's hard for me 
06-21-2014 02:35 PM
#4
blackemil (Junior Moderator)
Try to come up with unique creatives. Works for me. Usually i pulled up 100 % roi on adult , for certain countries .I used some ideeas to get this.Hit me up and we can talk about it.
06-21-2014 03:22 PM
#5
jerryh2cpa (Member)

Originally Posted by
blackemil
Try to come up with unique creatives. Works for me. Usually i pulled up 100 % roi on adult , for certain countries .I used some ideeas to get this.Hit me up and we can talk about it.
add you, off course I create my unique creatives
06-21-2014 03:22 PM
#6
Mr Green (Administrator)
Stop Focusing on ROI and Concentrate on VOLUME. You should read that.
06-21-2014 03:58 PM
#7
cmdeal (Veteran Member)
Yes, new affiliates mistakenly place way too much emphasis on ROI and CTR.
Focus instead on (risk adjusted) profit and profit growth.
At the end of the day, those are the only two metrics that you are really trying to maximise.
06-21-2014 04:17 PM
#8
jerryh2cpa (Member)

Originally Posted by
Mr Green
just read the thread, so 20%-30% roi is great! I just need to scale up to every countries and traffic sources? Haha I need a lot of money to keep cash flow, like $100k i think.
06-21-2014 04:26 PM
#9
cmdeal (Veteran Member)

Originally Posted by
jerryh2cpa
just read the thread, so 20%-30% roi is great! I just need to scale up to every countries and traffic sources? Haha I need a lot of money to keep cash flow, like $100k i think.
Any risk adjusted ROI above your cost of capital (either interest rate on debt or cost of equity) is a good thing.
Indeed, if you can get
a risk free ROI above your cost of capital with
no limitations on, or diminishing returns to, scale, then by the laws of basic arithmetic, you will be wealthier than Bill Gates, Warren Buffet and Li Ka-Shing combined.
Since you don't see that many people around who are wealthier than Bill Gates, Warren Buffet and Li Ka-Shing combined, another way of looking at it is that
with increasing scale, a positive ROI on any investment will normally start to approach the cost of capital.
This is why you really should not be too impressed when you see people post about their 4,958% ROI campaigns or whatever.
These are not sustainable with scale.
06-21-2014 04:59 PM
#10
jerryh2cpa (Member)

Originally Posted by
cmdeal
Any risk adjusted ROI above your cost of capital (either interest rate on debt or cost of equity) is a good thing.
Indeed, if you can get a risk free ROI above your cost of capital with no limitations on, or diminishing returns to, scale, then by the laws of basic arithmetic, you will be wealthier than Bill Gates, Warren Buffet and Li Ka-Shing combined.
Since you don't see that many people around who are wealthier than Bill Gates, Warren Buffet and Li Ka-Shing combined, another way of looking at it is that with increasing scale, a positive ROI on any investment will normally start to approach the cost of capital.
This is why you really should not be too impressed when you see people post about their 4,958% ROI campaigns or whatever.
These are not sustainable with scale.
I like your suggestion, and what I want to know it's for big guy in adult, what's the normal ROI for them
06-21-2014 06:19 PM
#11
bbrock32 (Administrator)
That's adult lately, low margins high volume.
You can squeeze a bit more maybe but forget the 100%-200% ROI days on a large scale.
06-21-2014 06:26 PM
#12
jerryh2cpa (Member)

Originally Posted by
bbrock32
That's adult lately, low margins high volume.
You can squeeze a bit more maybe but forget the 100%-200% ROI days on a large scale.
haha, ok now my goal is 25% roi, and try to spend $10k per day
06-21-2014 06:46 PM
#13
cmdeal (Veteran Member)

Originally Posted by
jerryh2cpa
haha, ok now my goal is 25% roi, and try to spend $10k per day

If you can get a consistent 25% ROI on spend of $10K a day, that is a pretty decent business.
That is daily revenues of $12,500 and a gross profit margin of 20%. Assuming you are working by yourself, don't have much overheads and can keep SG&A down to about 5% of revenue, you will be netting on a pretax profit basis $1,875 a day.
Over the course of a year, you should net slightly close to $700K pre tax profits. After tax, you should end up with about $400K. Certainly not enough to retire on, but a decent chunk of cash for a year's work, nevertheless.
Once again, worry much more on a) how you can decrease you risk, b) how you can increase your risk adjusted profit, and c) how you can keep the business growing.
ROI is one (of many levers) that you have to achieve this goal. But
ROI is not an ultimate end goal in and of itself.
I would much rather have a 5% ROI business that nets $1 million a year with low risk and growing at 15% a year, than a 4,958% ROI business that can only scale to net $1000 a year and which can pretty much disappear overnight.
06-21-2014 07:02 PM
#14
jerryh2cpa (Member)

Originally Posted by
cmdeal
If you can get a consistent 25% ROI on spend of $10K a day, that is a pretty decent business.
That is daily revenues of $12,500 and a gross profit margin of 20%. Assuming you are working by yourself, don't have much overheads and can keep SG&A down to about 5% of revenue, you will be netting on a pretax profit basis $1,875 a day.
Over the course of a year, you should net slightly close to $700K pre tax profits. After tax, you should end up with about $400K. Certainly not enough to retire on, but a decent chunk of cash for a year's work, nevertheless.
Once again, worry much more on a) how you can decrease you risk, b) how you can increase your risk adjusted profit, and c) how you can keep the business growing.
ROI is one (of many levers) that you have to achieve this goal. But
ROI is not an ultimate end goal in and of itself.
I would much rather have a 5% ROI business that nets $1 million a year with low risk and growing at 15% a year, than a 4,958% ROI business that can only scale to net $1000 a year and which can pretty much disappear overnight.
I've keep a $2k profit per day on mobile for 11 months, I hope I can beat adult this year

Thank you again.
06-21-2014 07:23 PM
#15
alpacino (Member)
I always look at ROI as this.
If I would invest my money in something else, you would probably have a ROI of 10% on a yearly base.
So whatever I do online, if I earn more money back than when I let my money on the bank and receive a 2% or 3% yearly interest payment (and when you take inflation in consideration, your effective rent will be even lower), then a campaign that is doing a 20% ROI is much much better.
I also studied Business Economics and part of it was looking at the balance sheet, income statement and the yearly reports of the big companies and what i noticed is that the biggest companies in the world have just a 10-20% ROI on a yearly base..
And I think it is a logical consequence of growth.
On a small scale a high ROI is possible, but to attain the same ROI on a larger scale is not possible (due to efficiency problems for example)
06-21-2014 07:59 PM
#16
evasive (Member)
Most the big guys run on margins of 10-15%.
06-21-2014 08:07 PM
#17
jerryh2cpa (Member)

Originally Posted by
evasive
Most the big guys run on margins of 10-15%.
I don't think so, one of my friends is doing adult, he earn $4k per day and he told me the ROI is like 60%, I start a thread here is to listen more words, because my ROI is so low.
06-21-2014 08:19 PM
#18
evasive (Member)

Originally Posted by
jerryh2cpa
I don't think so, one of my friends is doing adult, he earn $4k per day and he told me the ROI is like 60%, I start a thread here is to listen more words, because my ROI is so low.
Well I'm talking about the guys who run volumes of $50k+ per day in revenue.
06-21-2014 08:21 PM
#19
jerryh2cpa (Member)

Originally Posted by
evasive
Well I'm talking about the guys who run volumes of $50k+ per day in revenue.
50k is perfect, my goal is to generate $10k~$15k revenue per day
06-21-2014 08:24 PM
#20
t0mmy (Member)
High volume adult is a super competitive space, as I'm sure you have discovered. My advice is to not waste too much time worrying about creatives since they are the public facing aspect of your campaign. Seek advantages that the other advertisers can't see or duplicate (as easily), on the backend and with your network.
06-21-2014 08:26 PM
#21
cmdeal (Veteran Member)

Originally Posted by
alpacino
So whatever I do online, if I earn more money back than when I let my money on the bank and receive a 2% or 3% yearly interest payment
I don't think there are too many banks in the Eurozone currently where you can get a 2% or 3% rate of interest.
ECB (European Central Bank)'s deposit rate is now -0.1% (yes that's right, negative interest rate) ...
06-21-2014 08:32 PM
#22
jerryh2cpa (Member)

Originally Posted by
evasive
Well I'm talking about the guys who run volumes of $50k+ per day in revenue.
and also in my experience, spend 50k on advertising per day is very very very hard, I know some super aff, but they only spend $20k at most per day
06-21-2014 08:37 PM
#23
alpacino (Member)
bottom line: be happy with a roi of 10 percent and beyond
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