Anyone with good knowledge of the business will have at least some understanding of the concept of ROI – Return on Investment. ROI is an important performance measure when looking at an investment to evaluate its efficiency. For serious or professional punters, sports betting is also very much a business venture. That means the Returns on Investment notion also comes into play in the betting world. A stable and profitable sports betting career is not an easy thing. That said, it is not impossible, and the growing number of successful bettors in the world today is clear proof. Let’s take a look at ROI and how it can improve any punter’s fortunes.
Return On Investment (ROI) – Definition & Application
ROI (Return on Investment) is a measurement of an investment’s cost against its returns over a while. Expressed as a percentage, it is the current value of an investment, subtract initial value, dividing the difference (net return) by initial value, and multiplying by 100. A profitable bettor must very consciously keep track of their betting money. ROI in betting, therefore, involves measuring betting income up against total wagers over some time. Say a punter spends $100 on betting over one month, obtaining a total income of $120. Their net revenue would be:
$120 – $100 = $20
Their Return on Investment (ROI) would be:
($20/$100) * 100 = 20%.
Does A High ROI Connote Betting Success?
Yes, but not always. Time and/or total money wagered are essential metrics when using ROI to measure betting success. A short period usually means the punter has not placed too many bets and has not spent a lot. That’s even though a punter may place many bets over a short period, or only a few over a long period. Either way, ROI makes much better sense when evaluating a large number of bets – meaning a considerable amount spent and (usually) over a longer time.
So, What’s A Good Percentage Then?
Many betting pros agree that anywhere between 5-10% ROI for a prolific punter is a great success over a significant period. For illustration, if a punter places 500 bets and garners a 10% Return on Investment, they are considered more successful than one with 40% ROI from three bets. They would have raked in more profits too. Maintaining a positive ROI over a long period is the name of the game. It means longevity and consistency. It means a successful betting career instead of a poor one and separates betting for real profit-making from just for leisure.
How To Boost ROI In Sports Betting
Improving a punter’s Return on Investment in sports betting is the same as asking how to achieve sustainable profitability. A few points on how to do that include:
- Ensuring proper bankroll management. As mentioned before, every serious punter must make a conscious effort to keep track of their betting finances. They don’t just up out of bed and place wagers. Set aside a fixed amount of betting money (based on income) per period, say each month. All gambling must be done responsibly, always.
- They only use a certain percentage of the bankroll to place each bet (say 1%-5%), and they don’t chase losses blindly.
- Utilizing a sportsbook aggregator. An aggregator collects odds from multiple bookmakers, and this helps twofold. It saves the time it would take to create accounts with many bookmakers and, more importantly, helps the punter easily find value bets.
- Having good sports betting strategies. Some betting strategies one can learn from research and others from experience. A good punter has a system or culture when placing wagers and keeps refining it for better results as they accumulate more know-how.