Return on Investment (ROI) should become your new best friend.  You want to figure out way to measure the money you make from spending.

I’ll give you a simple example. When you put money in a savings account, it earns you 1% interest.  You’re ROI in this example is 1%. If you find a savings account that pays 2% interest, it would make sense to move your money to the new bank so you could get an ROI of 2%.

You should strive to get a positive ROI on all your spending. If you successfully do this the. You transform your spending into investing.

Let’s say you have a marketing activity that earns you $10 for $1 you spend. In this example your ROI is 1,000%

How much money should you spend in this scenario?

My answer is as much as you can.

The key with RIO is making sure you had a good measurement system in place. If you don’t measure you can accurately analyze your results.

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