Most people think that profit is the most important indicator of success in sports betting, but it’s not. If you want to know how good a bet is, you should pay attention to three things: Yield , Return on Investment (ROI) and profitability.
For example, let’s say, Vladimir has 10,000 dollars, and he wants to invest in sports betting. He decided that he would divide his bankroll into 100 parts, and he would bet one game a day for a year. The size of each bet will be exactly 100 dollars. He will not withdraw over the next 365 days, so all losses and winnings will be returned to his account.
Suppose a year has passed when he made 365 bets of 100 dollars each. He won in 195 cases and lost in 170. Now on his account exactly 12,760 dollars. He won +2,760 dollars.
Profitability measures the effectiveness of rates. This is the profit / sum of all bets. The profit in our example is +2,760 dollars, and he made 365 bets * 100 dollars = 36,500 dollars. Yield = 2760/36500 = 0.07562. Its yield is 7.562%. We evaluate all indicators about 10% with the mark “very good”.
Return on Investment (ROI)
The ROI for the calculation is as follows: take income (net profit) for a certain period and divide this income into allocated resources (investments). In our example, Vladimir received +2,760 dollars profit with starting money (this is his investment, not turnover) in the amount of 10,000 dollars. His return on investment in this example is 2.760 / 10.000 = 27.60%.
“Profitability is the ability of a business to make a profit.”
Without profitability, your sports betting will not “survive” in the long run. In a business such as sports betting, everything is measured in profit and loss. Profitability = Profit / All losses. For example, Vladimir bet on 365 events, and his record – 195 successful and 170 unsuccessful. In this case, he lost 170 bets * 100 dollars = 17,000 dollars. Profitability = 2.760 / 17,000 = 0.1623 or 16.23%.