Question

Your client's product costs us$50 to produce, and it sells for us$150. she's sold 10 units and spent us$700 on her adwords campaign. how would you calculate her return on investment (roi to help her understand the benefit of using adwords?

Answer 1

I would calculate her return on investment by using this formula ((Profit from client's products - AdWords Expense)/Adword Expense * 100%). Therefore, you could achieve 42.85% (($1000-$700)/$700 * 100%) return on investment from your investment in the Adwords. The profit from the client's product is $1000 (10 * ($150-$50)).