What Is ROI (Return On Investment)?

ROI measures the amount of return on an investment relative to the investment’s cost.

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:

Return On Investment (ROI)

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 

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