In sports betting the main reason for playing on online platforms is to make profit by minimizing losses and this is done by understanding if you are making a profit or a loss, majority of professional punters have an idea in the back of their heads to guide them.
The ROI and Yield are concepts that professional punters should know and use in their daily betting activities and usually inexperienced punters will simply look at previous account balances as a way of monitoring their progress instead of the yield concept.
Return on investment (ROI) is a useful tool if correctly utilized by a punter and can be used to calculate sports betting effects on your account since we can easily see progress through the formula and understand weather our investments are yielding. Yield is defined as betting efficiency depending on number of selected odds and bets.
A good winning percentage is considered at 52% or more this shows that you are not losing money and can be viewed as beating the bookmaker.
Being familiar with the ROI and Yield concept can help control the betting style of a regular punter. It’s crucial to understand if one is making losses or profits on betting and the simple formulas used to do calculations are simple so you don’t have to worry about being good at math.
How to Calculate Return on Investment (ROI) in Sports Betting
The concept bases its principles as ration between money won or lost on investment relative to amount of money initially invested and can be calculated annually or even monthly since a punter can customized the ROI to fit a specific time scale. The conclusion draws from the ROI calculations give a general impression on how you are progressing on the online sports betting, the capital may have a strong influence on the result and the general formula used is;
ROI= (profit or loss/ cost of investment) x 100%
The simple formula can help you make better decisions in the future, the general idea behind these concept is to make a profit with at least not losing all your bankroll in the long run and the ROI formula is almost similar to the Yield formula the difference is that although the ROI is based on the return on capital the yield is related to the turnover or the total of all stakes amounts.
We also have the option of a more precise approach when calculating the ROI and we should take into account everything you are spending in order to bet. This includes normal charges on internet connections, transactions cost during deposit or withdrawals among other top-up amounts among other personal cost when betting like payment for tips and this approach brings about the precision calculation on the ROI making the percentage more accurate than the general formula that only focuses on the capital.
By taking into account each expenditure in order to bet, the final percentage can show progress on both your side and profit or loss on the side of the bookmaker. If you can include all this expenses and still get a positive ROI percentage then you are in a good position as a professional punter and if your result is below the average percentage you should revisit you’re playing styles.
Meaning of Yield in Betting
Unlike the return on investment the yield is focused on the turnover amount and not necessarily the capital invested and the term itself means profit earning or revenue earnings with the objective of keeping it positive. Obviously if you intended vision is to keep the risks low then you will select odds with higher probabilities and usually such odds are backed with low odds, which result in smaller yields meaning will have to place more effort to reach targets.
Alternative is to look at aggressive betting strategies that are consider more risky and this may reflect as a bigger yield amount based on the higher odds placed. Generally it’s a path followed by few with majority of punters avoiding risks by running away from high odds and focusing on the lower odds to be safe from losing bets.
Depending on the chosen strategy the punter will experience an average yield of between 4% or more as profit in the long run provided the strategy employed works you are consider as a positive yield and can be considered as a successful betting season. These option is consider as a wise option but its yield will be lower and this is better than a loss. The yield formula is as follows;
Yield= [{profit or loss/ capital employed}-1] x 100%
In the formula the capital employed includes all stakes, even those that have not be lost (money back option or cash out options), however some punters may miscalculate their yield and as a misleading result may overestimate their yields giving a wrong impression in the long run. Although this may view a punter as successful through the high yield index result this is however not true since it’s difficult to estimate the real yield percentage limit to define a punter as an effective better and majority of punters do not understand the yield effect. There are other additional facts we have to check in order to fully test this formula in the long run.
Knowing the exact number of bets can be used to calculate, checking the yield after a long period of time is considered and in order for a punter to be considered as efficient the yield percentage should be about 6% and more than 20+ plus is considered as inefficient punter. A punter with more than 300 bets and with a yield of 10% is considered efficient than a punter with 50 bets and yield of 20%.
Secondly, understanding if the punter is a frequent bet or rarely places bets over a long period of time and this can be used to show efficiency. If you can manage to reach a 50% hit rate your potential yield can increase by up to 15% over a given period.
