Here’s Why 5% ROI is Still a Good Profit

You’ve just learned about a killer sports betting strategy and can’t wait to try it out. You make a deposit and you start placing bets following that strategy, being impatient for the piles of money you are about to win.

Undoubtedly you expect to double or triple your funds in the space of a few days. You rationalize that If you don’t achieve that, it’s not worth your time and energy. Wait… is it really that straightforward?

Your sports bets are a business

Think of this like a business. For 90% of the companies in the world, regardless of the industry, 10% return on investment (ROI) is a great result. 5% is also a good result. If you invest some money in a mutual fund, 10% is considered an excellent return. It should be no different with regards to your sports betting.

Think of your betting as a business entity in itself. You are the manager and you are responsible for the results this entity produces. When setting your betting plan and goals for the next year, would you be happy with a 10% ROI? You absolutely should be, as most other business owners. Keep reading to see an example of what I mean with actual numbers.

It is deceiving for sports bettors to think that 10% return is nothing and to always expect winning much more. After all, this seems very easy, right? You sit in front of your laptop, or pick out your smartphone, and in the space of minutes you can make numerous sports bets on various events. You’ve researched them, feel confident about them, and tell yourself that if you don’t win all of them, you absolutely have to win at least 3 out of 4.

Wrong.

Of course I’m not saying you can’t win 3 out of 4 or all four bets. That’s what we are striving towards. But under no circumstances you should expect with 100% certainty that it will happen. It’s called a bet for a reason after all, regardless of the fact you’ve put your decent research into it.

You can win, or you can lose. You should be prepared for both outcomes. Things usually even out after a sufficient sample of bets, and if you find yourself at 5% profit, hey – well done! Instead of feeling sorry that you “should have achieved more”, give yourself a pat on the back and appreciate that what you are doing is bringing you money.

Your business is profitable. So stick to your strategy, be consistent, and keep making similar types of bets. Chances are that in the long term your ROI will be around the same figures.

Profit accumulates over time

Imagine that you manage to hit 5% ROI most weeks and each of your sports bets is made with a similar stake which is predefined as a percentage of your bankroll. The power of the compound interest can do wonders for you.

If your starting betting bankroll is $200 during the first week, a 5% ROI would leave you with $210 at the end of the week. Now I hear what most of you are saying: “I’ve spent the whole week betting just for $10 profit.”

That’s correct, but after you hit 5% ROI the next week again, you will have $220.5. After the third week you’ll have $231.5. After the third month – just under $360. In one year – $2,528.

Not so bad now, is it? A nice chunk of additional income from sports bets following a strict shrewd strategy and being disciplined.

What if you manage to nick a ROI of 10% every month? That will leave you with $28,408 at the end of the year.

What if your initial budget allowed you to start with a cumulative sports betting stake of more than $200 in the first week?

The $10 profit after the first week now doesn’t look so small when you follow your plan long-term, does it? 🙂

The power of the compound interest can do wonders for you.

These calculations, of course, are for illustrative purposes only and don’t account for the fact that in some days, weeks or months you are going to lose money. That’s normal, it happens to everyone. But in other days, weeks or months you will be on a winning streak and can finish with a 25% ROI for the period. That is why in the example above I’ve used an average ROI of 5% for the whole period.

Patience pays off

People often seek results in the short term. Once they don’t get what they want, they quickly become discouraged and fail achieving their goals. The solution is to trust the process and be patient. Good things happen to those who are patient. That’s true for all areas of life.

In terms of sports betting, that means being aware of your actual results by recording all your bets and their outcomes in your journal. You’re disappointed you’ve won “almost nothing” this week and you could have achieved much more? Calculate what your ROI is over that period.

Is it 5% or more? You are on the right path. If you’ve nailed the suitable sports betting strategy for you and you maintain this ROI consistently, check your winnings again in a year, or two years. You’ll be proud of yourself.