What is ROI, and How Important is it To Your Digital Asset?

12/08/2021 08:05:18 +0000
Engaging in the business industry without the assurance of returning your investment is troublesome. Evaluating first your investment before engaging is the best way to do it. We all know that digital assets are contents stored digitally. It means that when we talk about the digital asset, we are talking about some photos, videos, mp3/mp4 formats, and online files.
ROI is short-term for Return on Investment. Return on investment is a formula used by investors to evaluate and calculate their investments to decide whether it has performed well compared to others. ROI in the digital asset? Is it even possible? Yes, DAM or Digital Asset Management is a system software used by businesses to organize, distribute, and collaborate to store digital files in what so-called digital asset library.
ROI is pretty popular with the stock market because ROI's simplicity and versatility in the metric computation are extraordinary. ROI can be used as a fundamental measurement for investment profitability. ROI is typical in a stock investment like cryptocurrency and digital token. Do you want an easy and quick calculation of your investments? Learn how does ROI work on a digital asset.
ROI in Cryptocurrency
The use of ROI in cryptocurrency traders is to assess the performance and efficacy of crypto investment and compare the results of various crypto investments in a portfolio. Cryptocurrency traders must keep track of the ROI number and adjust their bitcoin holdings as needed. A positive ROI number indicates that the crypto investment is profitable, while a negative ROI value indicates that the crypto investment is losing money.

Investors interested in investing in a crypto project through a token sale may want to examine the return on investment (ROI) or the expected return on investment. The return on investment is computed by subtracting the investment's initial value from its current value and dividing the result by its beginning value. It may seem a little bit confusing at first, but once you know the formula of ROI in your cryptocurrency asset, it will be a successful one for sure!

The time is not taken into account while calculating ROI. A cryptocurrency trader who wants to sell may have to wait considerably longer than another crypto trader who wants to sell. The previous trader's ROI may be lower in this situation, but the ROI figure does not reflect this. Increased profits and lower expenses can result in a higher return on investment. ROI is a valuable indicator of cryptocurrency success, but it should be used in conjunction with other factors when assessing crypto assets' profitability.
Digital Asset Management (DAM)
DAM software is the best for you if you operate content, brand, and marketing operations! You'll be thinking that today's generation of investment is complicated and hard to understand. The return on investment is well-built for digital asset management because it secures your brand, rations content operations, and helps with your e-commerce content problems.


It'll be troublesome if you can't solve what is missing with your business case, right? ROI is here to help. Calculating the ROI for your DAM investment greatly shows how it supports your imperative actions. Digital asset management connects your revenue much faster and accurately.

How to Calculate DAM ROI
Demonstrating the value of a well-functioning digital asset management (DAM) strategy is an essential part of any organization's digital asset management strategy.


Look for and discuss time-saving opportunities. Our first model encourages you to think about the time constraints that your graphic designers and marketers have as they are continually requested to identify, compile, and transmit visual content (digital assets) to internal and external stakeholders.

Savings on asset fulfillment. This model expands on the previous one by estimating how much money you would have spent if you didn't have a self-serve content hub. According to our research, the average mid-size company customer downloads around 60,000 assets per year. In this scenario, employing DAM software saves an average of nearly hundred of thousands in compensation. You may do this experiment to show that the number of downloads and uses possible with DAM considerably outnumbers what was previously possible.

Use of basic ROI calculator. Many DAM system suppliers guarantee a return on investment (ROI) after implementation. Typically, this is described by looking at the time saved multiplied by the number of users across the organization, multiplied by their wages using a basic ROI calculator (see also. The Real Estate Investor's Pocket Calculator: Simple Ways to Compute Cash Flow, Value, Return, and Other Key Financial Measurements). It is a broad indicator of savings, but not all systems are equal. Over a longer time, specific DAM systems prove to be even more valuable. The system's use and adoption can also significantly impact the bottom line regarding ROI.

How to Increase Your Return on Investment 
Now that you know what ROI is in terms of your potential investment, we want to discuss some ways in which you can increase your rate of return. Sure, being able to do ROI calculations is fine, but it really doesn't matter all that much if you don't actually know how to increase your ROI.

As an entrepreneur starting a new business venture, something like an ecommerce site, knowing how to increase your ROI is vital. Do keep in mind that what we are referring to here is digital ROI. In other words, we are about to provide you with some great tips on how to increase your annual ROI, particularly in terms of running a website, such as an online retail store.

One of the biggest mistakes that so many people make when trying to increase their return on their initial investment is to simply ignore crucial data. When it comes to important business decisions, starting with the right analytical tools and data will make a huge difference.

You just cannot create a solid business plan, marketing strategy, and business model over any period of time if you don't have the information and data to back it up. Therefore, before you invest any money into a business venture, you always want to use several tools at your disposal so you can then do a basic ROI calculation.

You need to use tools such as surveys, segmentation, journey maps, touchpoint maps, and predictive analysis. The more information you have to work with, the more money you can get back out of your initial marketing costs.

In terms of data analysis, you want to invest in some valuable tools that can provide you with the information you need to figure out what both the initial cost of your investment is, as well as what the ROI is going to be like. You need to focus on several relevant factors such as email opt-in conversion rates, user conversion rates, lifetime value, social media referrals, and acquisition costs.

Perhaps one of the best and simplest ways to increase your annual return is to ensure that your overhead costs are as low as humanly possible. First and foremost, when it comes to digital marketing, this means that you need to assess what works and what doesn't work. Research shows that up to 60% of the money used for digital marketing is completely wasted. Therefore, how much money you spend on marketing doesn't matter nearly as much as how you spend that money. Finding the right ways to market your products or services is essential.

Sure, you can spend thousands and thousands of dollars on marketing, but if it doesn't reach the target audience in the right way, then you have wasted your money. Moreover, in terms of overhead costs, you might also consider downsizing your company.

To make money, you don't necessarily need to have a huge office filled with fancy equipment and lots of employees. Anything and everything you can do to decrease overhead costs will help to increase the return on any investment opportunity presented to you.

Something else to consider here is the amount of suppliers and vendors that you have to deal with on a daily basis. Sure, when you first started your business it may have made sense to use many vendors and suppliers, the ones that offer you the best products for the lowest prices. However, something to keep in mind here is that time is money, and the more of these vendors you need to communicate with on a daily basis, the more time you are wasting.

What you also want to consider here is how you go about marketing your business. Simply put, investing in a business means that you are relying on potential customers to buy your products and services. Therefore, you need to find ways to reach your target audience, and to convert those people into purchasing customers. Taking advantage of social media marketing, paid advertisements, blogging and guest blogging, are all things that you should consider doing. Increasing your ROI, a lot of the time, has to do with the way in which you can reach the people who will be responsible for your revenue stream. 

Final Takeaway
Using your digital assets for a business is excellent, and it may bring you many opportunities in the future. Having a background and basic knowledge about how ROI works is the best partner to your digital asset. Using digital asset management software extensively helps a business be more proficient and accurate with its record, so before engaging in using digital asset management tactics, make sure that you have a little bit of knowledge with that software to avoid any mistakes. As the saying says, dirty hand clean money means that all the hardship beforehand will be paid off.
A Little Bit of Advice to our Aspiring Entrepreneurs
Starting a business is a continuous process of learning and growth. It's critical to develop both practical and emotional abilities. Check out Aspiring Entrepreneurs, blogs, podcasts, courses, and books are offered by our very own business expert Sophie Howard.
About the Host
Sophie Howard is the founder of Aspiring Entrepreneurs, a community designed to help people develop the skills and confidence to build a business and a life that serves them. Sophie began online in 2013 with an Amazon firm, which she sold for more than $1 million in 2015.

Sophie has lectured on stages all around the world, encouraging and teaching other ambitious entrepreneurs. She has established instructional programs educating thousands of students how to sell online, in addition to releasing over 1000 products.

Sophie has also written a book titled "Aspiring Entrepreneurs: A Guide to Finding Your Best Path to Financial Freedom."
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