To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.
The return on investment formula:
In the context of MOBE a common example would be the cost of becoming a licensee to resell MOBE's products.
MOBE License Rights (MLR) cost $2500, and if a licensee were to sell one MLR a month for twelve months (a modest goal), their commissions would total $15,000 ($1250 x 12).
If the logistics of selling those 12 MLRs cost an additional $1250, their NET PROFIT would equal $11,250.
In this case, their return on investment would be 4.5, meaning that their profits equal 4.5 times their original investment.
4.5 x $2500 = $11,250