What Does “Negative ROI” Mean
Glossary
“Negative ROI” means the ad campaign is running at a loss — you’re spending more on traffic than you’re earning from conversions. The investment isn’t paying off yet.
What is ROI:
ROI (Return on Investment) shows how profitable your campaign is.
Formula:
ROI = (Revenue – Spend) / Spend × 100%
Example:
You spent $500 and earned $400 → ROI = (400 – 500) / 500 × 100% = –20%
That’s a negative ROI — you’re down 20%.
How affiliates talk about it:
— I spent $1000, got some FTDs, but ROI’s still negative — only $700 back.
— Offer’s converting, but still negative ROI — testing creatives now.
Why ROI goes negative:
— Wrong offer or GEO
— Weak creatives or landers
— Expensive clicks and tough competition
— Just testing — campaign isn’t optimized yet
