🦄 How Valuable is the ROMI Metric to a Business?
Once I started working with Atlasmic (my startup focused on sales), I’ve spent days understanding the main metrics businesses should follow. While working with many successful companies and “just starting to grow” ones, I’ve decided it’s important to share insights. Today, I wrote an article about ROMI, the business metric related to marketing.
https://atlasmic.com/blog/how-valuable-is-romi
I was wondering what ROMI scores do you achieve in your startups? Any key learnings I didn’t mention in the article? Thanks
It depends. If you are an indie hacker, I'd say positive ROI is critical. If you are looking to go down the venture-funded route, you can be an Uber - negative ROI, subsidised by investors in the hope that eventually you'll figure out a way to become profitable.
I'm interested in the usage of ROMI instead of just 'ROI for a given marketing channel'. I guess the difference is just a letter. My worry is that ROMI means you look only at the costs of a given marketing channel and not, for instance, at the time cost of whoever is doing the marketing, or the central costs that serving a given customer incurs.
Love your opinion, Louis. I agree - especially for indie hackers, it is a metric that is required to be positive.
Regarding your ROMI explanation - that's a fact. While ROI gets your all expenses and profits together - ROMI is primarily focused on your marketing performance of a given marketing channel. However, that's a crucial thing for a modern business - you need to know which channels to cut off and update with your needs.
Yeah for sure - that's fair.