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POAS – is 0 or 1 break-even?
I’m not really sure how to interpret my calculated POAS. What bugs me is that ROAS is “how many dollars you get back from every dollar spent”, which means that POAS must be “how much profit do you get back for every dollar spent”… Following that logic, should I not deduct 1 from my calculated POAS? (Because I’ve spent one dollar to achieve that profit)
On the other hand, all profit over 0 must be… well, profit!
I’m not sure if I’m making sense, but hoping someone can clarify this!
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1 Reply
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Yes, absolutely. 1 is the break-even point. Everything above that is profitable, assuming that you correctly included all cost items.
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