What is Return on Investment (ROI)?

A performance measure used to evaluate the efficiency of an investment, calculated as (Net Profit / Cost of Investment) × 100.

Real-world applications and practical implementations

$1000 profit from $500 investment = 200% ROI

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The total cost to acquire one paying customer, including marketing and affiliate commission costs.

The predicted total revenue from a customer over their entire relationship with the business.

The percentage of visitors who take a desired action, such as making a purchase or signing up.