ROI (Return Of Investment) in
Business Online
ROI is the return on investment and it's accompanying obligations. In the investment world, most ROI calculated
based on monthly or annual
period, but in the world of online business ROI is calculated on a daily or hourly. ROI is also used as a
profit sharing contract term and restricted investments
paid periodically until the initial capital is returned 100%.
Therefore, the ROI is quite different from the profit in the true sense, more precisely defined as gross income. For example, in the sale of goods, the price sold is gross income, while the difference in the purchase price plus any costs that goes
along with selling price or
profit is net
income / profit.
2 reasons why ROI is
used in business online:
Investment in online
business systems is
limited by the lifetime determined
that profit sharing
is paid as a capital,
so that at the end of the contract
the company has not
had any dependents
and if the investment is going to be paid as a burden
and a benefit
would seem longer.
By using ROI figures, profit sharing paid
seem larger than the
actual profit. Suppose the
profit sharing is determined (in the online business,
profit sharing is
determined by fix) is 0.5% / day for
100 days, then it would seem greater
ROI when it is
mentioned in the form, which is
1.5% for 100 days. This is one form of
marketing that offered
exciting programs.
Why online business always offers
a fixed rate of return?
It is a form of offers that promise certainty, so that prospective investors do
not hesitate to join because it will soon receive a refund of their entire
investment. Advantages easily calculated and planned. Who will join if such return
of capital and profits will be paid 3 months at once? Because investors do not hold
the legal guarantee of an online business, online business even has a registered
office and corporate managers in local government. How much it cost if the
investment problem? Had to go to America to claim the funds ..
How does an online business will survive
doing business?
First. Commitment from the manager or
owner. This commitment can only be detected from the personal references as
possible from system managers and fund management. Is there a convincing reference?
We can do with seacrhing in google or ask friends online business. If we are
not getting the data manager, a web of online business program displays data
that are complete enough so that allows us to reach him.
Second is the investment system. A
business will always experience fluctuations in profit so there are times when funds
are received by the fund to be paid is at the equilibrium point (break-even). This
of course should be avoided by the investment manager. How does an investment
firm managing investor funds are usually "highly confidential". The
only evidence that can be held is the daily return is paid on time. An investment
firm must be able to develop the investment it receives through a more
profitable business. For example, forex / trading, auction, or retail. If the manager
is only relying on the "Ponzi" only, then surely the ability to pay of
the company will be faster decline.
Third, related to the Ponzi scheme. Ponzi schemes will always
accompany an online business, be it in the form of investment or multilevel. How
does an online business programs can survive become very dependent of the
development of a new member or new investment. That should be noted in this
case is if the old members use their income to make larger investments it will
count as additional expense and not as an addition to income. Repurchasing or compounding
only useful to hold the obligation to pay, but in the end will increase the
burden of the obligation to pay. Therefore, an online business will continue to
promote in order to bring in new members to chart a fairly significant increase.
Fourth, lower ROI according to the company's
ability. This is very rare, especially in the qualifying business online high
yield investment programs (HYIP). By lowering ROI, let alone competitors ROI under
weight will cause investors to leave. Just look at the development of BO with fluctuating
levels of ROI (not fixed), most of the increase in new members is not too sharp.
It also happens to ProfitClicking where ROI for investment ex-JBP lowered from
1.5% and 2% to 1%, although its total ROI of 150% still, of the investment
period 81 days to 100 days.
How does an online business program to determine ROI?
By the logic of the investment, the company will determine the amount of profit sharing in accordance with the company's profits. The Company will determine what percentage of the real benefits to be gained and what percentage of new investment will "help" the process of payment. The development of new investments usually have a larger portion, about 70%. While the profit of the Non-Paid Purchasing (customer spending that did not create profit sharing liability) is 30%. This is my view of some of businesses that provide explanations openly on its website. Most online businesses do not do this.
Planning is clear that an online business should strive to be the sale of goods or services "Non-Paid" can thrive. While a 70% duty must also be obtained through new investment from each member and new members. Marketing plan to be completely accurate.
What is the percent increase in new
investment to be achieved? If a business setting ROI of 2% per day for 100 days as a total ROI of 200%, the increase in new investments must be at least 2% x70% or 1.4% per day are calculated based on the total investment coming in today. So, suppose now that incoming investment is $ 1,000,000, then at least have to get a new investment of $ 14,000 on the
same day that profit sharing can be
paid the next day. If this is considered to be derived from new members and one new member will be investing an
average of $ 100, so today there are 140 new
members have the right to invest.
CONCLUSION
Be difficult to say an online business will last forever.
I saw some online businesses that have been running over 2 years is an online
business that is supported by the sale of goods or services of Non-Paid significant.
The greater ROI on offer, it can be ascertained the
sooner an online business will experience balance of payments imbalances that
will lead SCAM or change the system.
As investors, we must carefully observe all the
symptoms in the online business that we follow. It's rare that a company BO with
"pleasure" to survive in poor condition.
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