Return on investment, or ROI, is when you determine something’s profitability for your business. This includes the time and money you put into improving your business and is typically considered as a ratio of net income over investment.
(Net Income ÷ Investment) x 100 = Percentage profit.
A few examples of investments could be in PPC ads to promote your business, a new piece of equipment that enables you to improve your company or email marketing to generate leads that later convert to customers.. In order to achieve a positive ROI, you should generate a greater income than what you invested.