We've noticed that the current market-situation has had a negative influence on many of our customers and even on us, as well.
Seeing prices fall is, most of the time, not a great motivator to create posts, videos and advertise them with services as Smartsteem.com.
That's why we decided to do something that will hopefully motivate many of you.
Guaranteed positive ROI with our bid-bot *
Which means: bidding with @smartsteem would give at most an upvote with a positive ROI of 10% and at max with a negative ROI of -10%.
The Change: Guaranteed 1% positive ROI
Starting from today with a limited time-span, we've changed the max loss from -10% to +1%. Which means: you'll get at least an upvote with a positive 1% ROI.
As seen on the image above, you can confirm this change by going to steembottracker.com and taking at @smartsteem's configuration.
Now, we also have to talk about the important topic of ROI calculation.
When we say guaranteed positive ROI - we're talking about the ROI at the time of the vote-purchase/bid. Which is calculated as follows:
Max is a motivated steemian who is creating high-quality posts and wants to promote his post to reach a bigger audience.
After creating his post - Max decides to use the vote-selling market and bid-bot from Smartsteem.com. He takes a look at steembottracker.com and sees that the next bid-round for @smartsteem ends in 10 minutes. So he transfers 10 SBD to @smartsteem.
Additionally, he decides to buy 10 SBD worth of votes from Smartsteem.com as well - but he wants the max-amount of visibility so he waits until his post is 30 minutes old and then transfers 10 SBD to @smartmarket.
Vote purchases on a post that is younger than 30 minutes, result in lower upvotes as curator reward is lower => more reward for the author.
7.32% ROI. That's a solid number he thinks to himself and smiles.
We hope that you enjoyed our little story. Now, Max bought both votes from the bid-bot and vote-selling market. The ROI calculation is pretty much the same for both.
The data for this example is as follows: (NUMBERS BELOW ARE FICTIVE AND DON'T REPRESENT THE PRESENT)
STEEM - 2 USD
SBD - 1.8 USD
First - we calculate the USD vote-ratio aka the payout from votes.
(SBD_PAYOUT) + STEEM_PAYOUT_IN_USD (0.5 * SBD_DOLLAR_PRICE) + 0.5 (0.5 * 1.8) + 0.5 => 0.9 + 0.5 => 1.4
That means - our basic ratio is 1.4 - which would equal to a neutral 0% vote.
For @smartmarket - with a guaranteed 10% ROI - this would mean:
Basic Ratio * ROI_PERCENTAGE 1.4 * 1.1 => 1.54
And for @smartsteem with a bid-round ROI of 7.32%
1.4 * 1.0732 => 1.5
Now - these numbers represent the ratio without curation. But in the case of @smartsteem, votes are only cast once your post is 30 minutes old to prevent bid-sniping and are dynamically calculated for @smartmarket.
Calculation: Ratio + Curation
At 30 minutes - a voter receives 25% of his own vote-value.
This means - for @smartsteem:
BASIC_RATIO * CURATION_PERCENTAGE 1.5 * 1.25 => 1.875
And for @smartmarket - this is dynamic based on the post-age, but Max decided to buy votes as soon as his post was 30 minutes old, which makes the follow calculation:
1.54 * 1.25 => 1.925
Calculation: Max's Votes
From @smartsteem, he received a vote with a 7.32% ROI: (the ROI could have been between 10% and 1%)
10 SBD * 1.875 => 18.75$
And from @smartmarket - he will receive votes equal to 10% ROI: (always 10% - guaranteed)
10 SBD * 1.925 => 19.25$
Now, 7 days later - Max, is happy because his post was payed out. But in that time-frame the Steem price went to 1.9 USD and SBD to 1.7 USD - would that have resulted in a loss?
Let's find out and calculate the Payout.
@smartsteem - 18.75$ vote.
VOTE * BASIC_RATIO_WITHOUT_CURATION 18.75 * 0.75 => 14.06$ (Payout after curation) ((14.06 * 0.5) * 1.7) + (14.06 * 0.5) => 12 + 7.03 => 19.03 USD
In the case for @smartsteem:
Max paid 10 SBD. 18 USD at time of purchase and 17 USD at time of payout.
Max received 12 SBD + 3.7 SP => equal to 19.03 USD.
19.03 USD - 18 USD => 1.03 USD (5.7% ROI - SBD price of purchase) 19.03 USD - 17 USD => 2.03 USD (10.6% ROI - SBD price of payout)
Now, the calculation for @smartmarket's votes is very much the same, so we'll skip that.
As you can see - even though STEEM & SBD price fell - Max still made a very good profit. Between 5% and 10%. And we are not even counting the visibility he gained with that promotion. Which is actually the most important thing here.
We really hope that this post made the whole ROI-calculation a lot clearer for you guys!
We'll be waiting for you!