ROI...

in ROI there is no guaranty but only for $1 i will not pay $500

just that it, so please send your money to saving account in the bank and you can earn some interest.

Ha, ha, what's wrong with this world?

Of course not.

No one in his/her right mind would go for that offer.

Steve

No way...

Anyways there is nothing guaranteed nowadays online...

Until you are talking about bigger numbers, where say you get at least a 4-figure return, talking about single transactions is playing the small game. The tiny game, really.

Many businesses operate on slim margins. But many businesses are also run by dumb people, and go out of business. I don't know if you noticed, but the fast food giants went to war not long ago trying to buy customers with the lowest meal prices possible.

And what did they discover? Oh, they couldn't make any money. Each transaction was giving them the death of a thousand cuts. There is no Get Out Of Stupidity card, even for established and large businesses.

If your perspective is stuck on one transaction, you will struggle.

Lifetime Customer Value is where to look.

Also called CLV, or LTV.

Laddering.

Increased frequency of transactions. And looking at it from the CUSTOMER'S perspective is also key.

It isn't about the "put $1 in, get $1.05 out" perspective.

That's playing it small.

You must beat inflation, the tax man, opportunity cost. As the seller AND for the buyer. And that's just to begin with.

If I was willing to settle for a 0.2% return, I'd put the $500 in a CD and forget about it. Anything that took more time/effort would not be worth it.

There are too many other ways to make much higher returns with acceptable risk to mess with this kind of thing.

I thought you were joking

Honestly with the information at hand it's impossible to know.

I'd want to know how much effort is required.
How long it takes for the ROI and how scalable it is.

If it makes $1 a minute for little work and is scalable then yeah I could be interested. Reinvest the next day and you are earning $3-$4 a minute and so on.

If I have to wait a week, month, year or decade for the return then the risk reward isn't of interest.

If it can't be scared then what's the point in only earning $1.

and that's before ethical considerations.

Not at all.

Be careful who you listen to.

Theoretically, if I could do that something like 1,000 times a day then maybe.

$500 is too much for a $1 unless if it's a daily income. I can go with $30 per month with my $500 but if am only getting $1, I cannot risk my money

Thank you John. I understand your reply as saying that the investment makes a return in two ways the roi and leverage by way of increase in overall equity toward a more substantial goal thus making the 500$ for 501$ a more acceptable form of investment.

It's not just about ROI.

You also have to consider the opportunity cost.

If I invest $500 to make $1, how much am I losing because I no longer have my $500 to invest in a different opportunity that could make me much more.

Steve

If you give me guarantee that I can back my money today, if I invest 500$, I may profit 1$, any surity?

In order to answer your question on whether or not I'd invest $500 to generate a return of $1, I'd answer it with my own question, "What time frame are you talking about?"

If it's over the course of a year, then it represents 0.2% p.a., which as others have pointed out is pretty poor, and anyone would quite sensibly decline that "offer".

If it took a month to generate that $1, that is the equivalent of 2.43% p.a. Not spectacular but higher than the rate you get from a money market fund at the moment. So, perhaps someone (not me) would invest their hard earned in that.

It the time frame is a week, the rate rises to 10.95% p.a., which is a tidy return, and probably worth investing in.

At a single day to generate that $1 from your $500 investment, that equates to 107.36% p.a., which is a bloody good return in anyone's book, and I'd definitely be interested.

If it takes an hour then your annualised rate of return is 3,992,460,266.45%. With a return like that, you'd be a fool not to invest.

If you break it down even further into a minute, or a second, they both give out numbers that are so astronomical as to be meaningless. My old copy of Excel 2003 won't even calculate them and just gives an error message for both.

And so, we return to my original question, "What time frame are you talking about?". Until you answer that, no-one can give a definitive answer to your question.

Always keep in mind Whatty's First Law Of Quantum Financial Dynamics:

There is no guarantee in business. People always tell you that there is but there isn't. There's always a risk involved and it's up to you on how to make sure there is return of investment.