Calculating Simple ROI

spikedo · 04-28-2009, 07:24 PM

Okay, so I'm math-challenged! I wanted to figure out a simple ROI for some deals. Let's say I sold abcdomain.com for $195.00 when it cost me only $59.00 to buy. Not figuring any other costs, is my ROI 5463%? The formula I'm using is (net profit - domain cost) / domain cost x 100.

werty · 04-28-2009, 07:28 PM

No. It would be 230.51%

(Gain From Investment-Cost of Investment)/Cost of Investment x100

In other Words: Net Profit/Domain Cost x 100

Hope this helps

spikedo · 04-28-2009, 07:37 PM

How do you figure that? Please show you calculation.

okay. thx!

werty · 04-28-2009, 07:39 PM

I edited the last message to make it simpler

garptrader · 04-28-2009, 09:54 PM

To fairly represent one's return the calculation should factor in the value of one's time researching to find domains (going through drop lists, looking for highly-searched phrases to find if any domain with those keywords is available, time spent in auctions), manage portfolios and renewals, market them and perform the transfer when a domain is sold. When one factors in the cost of one's time, selling domains for less than $100 is a losing venture.

samuelhr · 04-29-2009, 02:37 AM

If you buy a domain for $100 and sell for $100, your ROI is 0%. If you buy a domain for $100 and sell for $200, your ROI is 100%.

bamaboy · 04-30-2009, 06:17 AM

Formula shown by werty is totally correct.
For example, if you buyed a domain in 10$ and sold in 20$ Your ROI will be 100%.

Jeff · 04-30-2009, 07:45 AM

Originally Posted by spikedo

Okay, so I'm math-challenged! I wanted to figure out a simple ROI for some deals. Let's say I sold abcdomain.com for $195.00 when it cost me only $59.00 to buy. Not figuring any other costs, is my ROI 5463%? The formula I'm using is (net profit - domain cost) / domain cost x 100.

230.51% is spot on!

????: NamePros.com http://www.namepros.com/domain-name-discussion/579189-calculating-simple-roi.html

How long was the holding period, as often times folks then "annualize" it as well.

Congrats!
-Jeff

04-28-2009, 07:24 PM	THREAD STARTER #1 (permalink)
spikedo Senior Member Join Date: Dec 2003 Location: Domains 4 sale Posts: 1,600	Calculating Simple ROI Okay, so I'm math-challenged! I wanted to figure out a simple ROI for some deals. Let's say I sold abcdomain.com for $195.00 when it cost me only $59.00 to buy. Not figuring any other costs, is my ROI 5463%? The formula I'm using is (net profit - domain cost) / domain cost x 100. __________________ Domain names for sale \|Unique templates for sale \| Totally free stuff \| Play free games

04-28-2009, 07:28 PM	#2 (permalink)
werty NamePros Regular Join Date: Jan 2009 Posts: 498	No. It would be 230.51% (Gain From Investment-Cost of Investment)/Cost of Investment x100 In other Words: Net Profit/Domain Cost x 100 Hope this helps Last edited by werty; 04-28-2009 at 07:36 PM.

04-28-2009, 07:37 PM	THREAD STARTER #3 (permalink)
spikedo Senior Member Join Date: Dec 2003 Location: Domains 4 sale Posts: 1,600	How do you figure that? Please show you calculation. okay. thx! __________________ Domain names for sale \|Unique templates for sale \| Totally free stuff \| Play free games

04-28-2009, 09:54 PM	#5 (permalink)
garptrader NamePros Regular Join Date: Jan 2008 Posts: 857	To fairly represent one's return the calculation should factor in the value of one's time researching to find domains (going through drop lists, looking for highly-searched phrases to find if any domain with those keywords is available, time spent in auctions), manage portfolios and renewals, market them and perform the transfer when a domain is sold. When one factors in the cost of one's time, selling domains for less than $100 is a losing venture. __________________ http://www.genericdomains.net/ http://www.dominericos.com/ http://www.premiumdomains.tv/

04-30-2009, 06:17 AM	#7 (permalink)
bamaboy NamePros Regular Join Date: Apr 2009 Posts: 283	Formula shown by werty is totally correct. For example, if you buyed a domain in 10$ and sold in 20$ Your ROI will be 100%. __________________ Selling: Japps.net wootmovies.com

	LeadRefs	Forum Sponsorship
	Want to sell your domain? LeadRefs.com finds multiple potential buyers to contact instantly!

04-28-2009, 07:39 PM	#4 (permalink)
werty NamePros Regular Join Date: Jan 2009 Posts: 498	I edited the last message to make it simpler

04-29-2009, 02:37 AM	#6 (permalink)
samuelhr Account Suspended Join Date: Mar 2009 Location: Stafford, England Posts: 226	If you buy a domain for $100 and sell for $100, your ROI is 0%. If you buy a domain for $100 and sell for $200, your ROI is 100%.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)