Glossary · Ecommerce metrics

What Is ROI?

The profit generated relative to the total amount invested, accounting for all costs, not just ad spend.

Definition

ROI (Return on Investment). The profit generated relative to the total amount invested, accounting for all costs, not just ad spend.

Overview

ROI, or return on investment, measures the profit you generate relative to the total amount you invested, accounting for all costs rather than just ad spend. It is the broader cousin of ROAS.

For a creator program, ROI captures samples, commission, tooling, and team time, not only media, so it reflects whether the whole effort pays off.

How it works

ROI is net profit from an activity divided by its total cost, as a percentage. If a creator program nets $30,000 in profit on $20,000 of total cost, the ROI is 150%.

Why it matters

ROAS can look strong while ROI is weak once you include commission, sampling, and overhead. ROI is the number that tells you whether the program is genuinely worth running.

How brands use it

Brands evaluate the creator program as a whole on ROI, then use ROAS and CPA to optimize the paid pieces inside it.

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