Significance of Profit/Loss and ROI

 

If you have ever had the following conversation, this article may be of interest:

 

You: Are you in profit this year?

Twipster: Yes mate, absolutely smashing it!

You: Have you got any proof of this profit?

Twipster: Er… .No.

 

The premise of trusting someone based solely on their word, is not an alien one to people. We experience it in everyday life, from the banks telling us we have their highest interest rates, to internet providers promising us that we have their best deal. But how often, after doing a little digging, do you find out this is not the case? As children, we are taught to question everything, yet too often in the world of twitter tipsters, too many punters are simply accepting things on face value. This article aims to explore why it should be necessary for any respectable Twipster to keep a profit/loss, and why punters are well within their rights to question why not, if they do not.

 

What is a profit/loss?

 

With the amount of Twipsters out there, it is of no surprise that a high percentage of punters out there, are likely unaware what a P/L is.

In layman’s terms, a profit/loss is an accurate and uptodate record of every tip that has been given, the stake suggested, and whether the tip was a winner, loser, or voided.

There are numerous websites that provide spreadsheets that figure out the profit and loss, all of which are simple and easy to use, as the only thing needing to be done is to input the data of the tip. For personal use, www.bettingtools.co.uk is the one this author uses, although there may be better ones out there.

From this profit and loss, a spreadsheet is able to easily work out the ROI, or return of interest. Essentially, this is the percentage (either positive or negative) you will have got as a return on your investment (in this case betting). For example, if you had staked 10 bets at £10 each, all at odds of 2.00/Evens, and 6 won/4 lost, then you would have a ROI of 20%, as for every £1 you put in, you’d have received 20p back.

 

Why is it important?

 

To address this point before it is raised by Twipsters offended by this article:
There will be plenty of you out there who are in profit, without keeping a P/L, however this is addressing why it is my belief that they are important, it is not a personal attack against you saying that you are bad Twipsters.

 

For the Twipsters
When it comes to tipping over Twitter, maintaining the trust of your followers, should be of the utmost importance. Yes, winning them money is hugely important, but if you lose the trust of the people who follow you, then you will not have many followers to help win money. But how can we build and maintain that trust?

By being transparent. By being honest. By keeping a spreadsheet of your profit/loss, so that if people do question you and your methods, you can simply point them in the direction of your P/L, and let the numbers do the talking.

 

For the Punters

You may come across a page, and see a pinned tweet, gleefully boasting at landing a 20/1 long-shot accumulator. But wait, is everything as fantastic as it appears be? Without a P/L, this apparent ‘Tipster King’ may well have lost the last 40 long-shot accumulators, which if a stake of £10 had been suggested, would actually have seen his or hers followers down £200.
Now, do not read this the wrong way. There is absolutely no harm in following the occasional longshot accumulator, and you may be that lucky follower who had only followed 10 out of the previous 20, and are therefore in £100 of profit. However, if a Twipster had a P/L for you to view, then this may have changed your mind about following them in the first place.

 

Conclusion

Keeping a profit/loss may not be the be all and end all for most people sharing their tips with the world via social media, yet perhaps the obvious conclusion is that if you want to be taken seriously, to build a following, and to maintain a level of transparency for yourself and your followers, then this is a route that should be explored.

A final point to the punters out there. Do not be afraid to ask the questions. It is, after all, your money, and you are therefore well within your rights to get answers.

If you enjoyed this article you should read part 1 – here

This article was written by – Ross @Stats_4_Footie