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Παρασκευή 1 Ιουλίου 2016

How To Calculate Your Betting Return On Capital (AKA Profits!)

Help on how to make money betting with the Secret Betting Club.
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Further to my article on 'How To Get Started With Betting Banks' a few weeks back – today I want to focus in on an extremely important, yet often misunderstood indicator for your betting - Return on Capital (or ROC as many people term it).

ROC is simply put a vital ingredient to weighing up a tipster, as it puts the profits they have made into perspective and shows how much your money has grown in relation to its starting point.

Or to put it another way – just how good a tipster actually is when it comes to making you stone cold cash. Which after all is what matters most, right?

So knowing how important all of this is - allow me to explain a little bit more about ROC and how to calculate it…

Which Tipster Would You Choose?

Firstly, consider the following question:  Which of the following Tipsters do you think is the best in the following table – Tipster X or Tipster Y?

Well, based on the information provided, it's clearly Tipster X as they have the higher profit and ROI. No arguments there.

Crucially though, there is some vital information missing to enable you to determine which tipster is best.  Yup you guessed it 'the size of the starting betting bank'.

Therefore, consider the same question again but this time I have added the size of the starting betting bank…Who then would be the best?

Now this is where it starts to get interesting as we need to work out the growth or Return on Capital to see who really is most effective. This can be done as follows….

  • Tipster X has made £2000 profit on a £5000 bank: 40% Return On Capital
  • Tipster Y has made £1000 profit on a £2000 bank: 50% Return On Capital

Now it's all change, as we can see Tipster Y actually has the best ROC and will have made your hard earned cash go further!

To explain with real money, if you started with the same betting bank figure of say £2000, Tipster X would turn this into £2,800 (40%), whereas Tipster Y would make it £3,000 (50%). That's an extra £200 profit all told.

ROI For Show, ROC For Dough

The above example is why one tipster began to coin the phrase "ROI for show, ROC for dough" as to emphasise just why Return On Capital is so vital.

A tipster might be claiming amazing profit figures but if their ROC is low, then they might not be as good as they say they are.

All of which is is why in each of our Tipster Profit Report 'league tables' we publish the ROC figures for every service we monitor.

To give you an example, here is the top 6 horse racing tipsters from the past 12 months as taken from our latest Tipster Profit Report where you can see the difference between ROI and ROC:


 
The names of the tipsters are removed as this is for members only, but you can see what the top 6 racing tipsters have achieved in terms of both ROC and ROI over the last 12 months.

So whilst the likes of Service 4 have the best ROI at 41%, they are only ranked 4th when it comes to actual ROC and bang for your buck.

To put some of these percentages into financial figures…
  • Service 1 with a 554% ROC, would have turned £2000 into £10,483 after fees in the past 12 months
  • Service 2 with a 528% ROC, would have turned £2000 into £9,117 after fees in the past 12 months
  • Service 3 with a 286% ROC, would have turned £2000 into £5,474 after fees in the past 12 months
So if you find yourself approached by a tipster claiming results that look too good to be true, then be sure to ask them about their own Return on Capital.

If they don't know what this is or refuse to answer, then you may well have dodged a bullet!

ROC Figures For 59 Top Tipsters

You can pick up more key stats such as the ROC on 59 of the best racing and sports tipsters in our latest Tipster Profit Report – available to download the instant you join the Secret Betting Club.

Each Tipster Profit Report is designed to help you find the very best betting tipsters – those that have proven themselves to be successful over a long-term period of time.

Our easy to follow tables and editorial recommendations make it simple for you to find out not only who the best tipsters are, but who the right tipster is for you!

Subscribe now and gain instant access. (Plus take advantage of our current 10 year anniversary offer where you can save £16 on the cost of membership!)

Best regards,

Peter Ling
SBC Editor



P.s. As a new member you can enjoy the peace of mind of our 90 day money back guarantee when signing up. This states that if at anytime during your first 90 days as an SBC member you are not happy with our service, you can request a refund no questions asked!


 

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