How To Get Good ROI On Sports Betting
To be a better bettor, you must consciously manage your money. For this, we must calculate your profits and losses well and know concepts such as ROI. ROI (Return of Investment for its acronym in English), is one of the essential concepts in sports betting and in any type of investment. It is an indicator that allows you to assess how successful a bettor is by generating money through their forecasts.
Frequently, novice gamblers look only at the hit percentage to, for example, evaluate a tipster. However, ROI is a much more representative measure of a bettor's level of success.
What Is ROI Or Return On Investment In Sports Betting?
The ROI on sports betting is measured as the winner's amount compared to the total amount of the bets placed. In other words, it is the ratio between the profit obtained and the total bet. This performance represents your profitability as a bettor. Obviously, it must be positive. Otherwise, you would be losing money.
To illustrate your calculation, suppose we have wagered a total of $ 400 for a certain time. If during that period, we have obtained gross or total income equal to $ 470, our net profit would be $ 70. Therefore our ROI would be:
70/400 = 0.175 (This means that the return on our investment is 17.5%)
Does It Exist At "good" ROI In Sports Betting?
The ROI is an indicator in the long term that gets significance after a certain number of bets. For example, 300 or more. For a small number of bets, it means nothing. It is not representative. If you have a low volume of bets, you'll need a high ROI to say you're winning money. Likewise, a 4% ROI over $1000 bet will have more value than a 20% ROI obtained with only $100 invested. Then, the ROI is an indicator that is useful only in the long term. A punter or tipster that shows an ROI between 5% and 10% over many bets is considered an excellent bettor.
In this sense, many advanced bettors have been consulted looking to know what can be considered a good ROI percentage. A consensus has been reached around that 5% over 1000 bets or more is an excellent value. Actually, it is hard to maintain an ROI of over 5% for a long time. A return of investment like this can place a bettor at the highest levels. This is due to the compound interest power. To put it in perspective, imagine that you start betting today with $100 as a bankroll and you end each week getting a 5% ROI. If you do the math, after 52 weeks (one year), accumulating this ROI week after week, you'll have in your hands more than $1200!
This is the magic behind an apparently low 5% ROI or any other similar value over a long time. To conclude, we can say that if you are thinking of hiring professional tipsters' services, you should first evaluate both his ROI and his Yield. This latter is another important betting profitability indicator. Starting there and reminding what we mentioned before, you can assess other bettors and measure your own betting performance.
