Full definition
ROI = (profit − cost) / cost × 100%. For example: you invest $1,000 and earn $5,000 back — that's a 400% ROI. It's the single most important marketing metric: a positive ROI means keep going, a negative one means stop.
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Why it matters
ROI is the only test of whether an activity deserves to continue. Every other metric is a waypoint on the road to it.
🧮 A worked example
Spending $1,300 to generate $4,700 in revenue is a 260% ROI. If cost of goods is 60% of revenue, the real ROI is 44% — still positive, but a very different story.
⚠️ The common mistake
Calculating ROI on revenue rather than gross profit, and ignoring the hours spent. Those two omissions turn a loss-making activity into one that looks like a success.
Full guide on the blog
Want to go deeper on this term?
ROI on Facebook Group Marketing — How to Calculate It and Why It Matters
How much are you actually earning back from every dollar you spend on Group marketing? Here's the methodology for calculating ROI accurately.
Read the full guideMore terms in General Digital Marketing
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CTA (Call To Action)
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Lead
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Funnel (Marketing Funnel)
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Brand Awareness
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Copywriting
The art of persuasive marketing writing
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