Limited Offer: Guaranteed Positive ROI with @smartsteem + ROI Calculation Explanation

in #steem6 years ago (edited)

Hello everyone,

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 *

While our vote-selling market (@smartmarket) has had a positive ROI ever since its creation (currently 10%) - @smartsteem, the bid-bot has a max ROI of 10% as well but also a max loss of -10%.

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.

ROI Calculation

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:


Storytime

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.

After he sends his transfer to @smartmarket for the guranteed 10% ROI upvotes - he notices that @smartsteem upvoted his post and checks how the current bid-round went on steembottracker.com

7.32% ROI. That's a solid number he thinks to himself and smiles.

Storytime: Explanation

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

Calculation: Ratio

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

Max send 10 SBD â 18 USD both to @smartsteem and @smartmarket.

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$

Calculation: Payout

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.

Result

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!

And remember, you'll always make a positive ROI with @smartsteem and @smartmarket as long as outside influence aren't making too much trouble ;)

Go to Smartsteem.com and promote your posts right now or send a transfer directly to @smartsteem & smartmarket.

We'll be waiting for you!

Team Smartsteem


Our Most Important Posts

Two Ways to Earn With SmartSteem: Do the Smart Thing!

Smartsteem.com - Empowering Quality Content

Smartsteem Referral System - Earn Vote-Selling Shares


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Nice to have you here!

smartsteem is my favorite. I love what you guys have done, great work.

Thanks for breaking it down. I was feeling discouraged using smartsteem with the bear market. Overall I think it is better than most bidbots, also more consistent.

Sometimes you get a higher return on bidbot if it hits before 30 minutes but then other times same bidbot will return a negative ROI. Plus it's a lot of work trying time a bidbot just right, I don't have time for that.

The vote value is $375.84. If I put $600 down, will i still get a positive return on investment or would I lose money? What's the best method? Just use the upvoting service out of the steembottracker?

With smartmarket they return what is not used. So in your wallet you'll see that you sent X SBD to smartmarket and then a few minutes later you'll see the difference Y SBD from smartmarket. It's actually quite ... smart!

As for smartsteem I don't know, I've never sent too much to a bid bot. It probably just sends your complete bid back but I want you to confirm that with @smartsteem @therealwolf.

I dunno, I love @smartsteem, but the last few times I have used it my curation rewards steadily drop and drop until I lose what I put in... What's up? I'e been losing steem lately using it :(

Yes that's been happening to me. I don't fully understand it yet but I don't think that is directly the bot creator's fault. They can compensate with a greater margin.

I think it is to do with the recent drop in crypto values. STEEM has dropped significantly (which is why I'm transferring all I have into it). BTC is down too. I think that's driving this drop in rewards so therefore I "think" but cannot be sure, that when the price rises again the rewards will increase.

So the price drop explains the expected USD payout however I don't work in USD, I work in SBD and that should not drop much and at the same time. IE my understanding is that SBD payout is dependent on the size of the reward pool and the demand on it (how many votes have been made). So this recent drop in SBD expected payout has me confused.

As you're paying for votes in STEEM currencies I recommend you think in those currencies because the USD exchange rate varies so wildly.

yah, that was exactly what I thought was happening myself. Still annoying regardless of fault :(

Just heard from @therealwolf in discord that the SBD is hard coded 1:1 with the USD in STEEM. So regardless of the external exchange rate in exchanges it's 1:1 here.

However I don't yet understand why that reduces the expected SBD payout. Reason is, if the reward pool has X SBD in it that should be independent of USD rate. Ie 1000000 SBD to be handed out whether it's US$2 per SBD or US$0.50 per SBD.

Unless the reward pool is actually in STEEM and then once distributed is converted into SBD at the USD to STEEM rate which I think would reduce the SBD payout - but I have to think that through.

Look at this post...

https://steemit.com/nanocheeze/@nanocheeze/come-with-me-on-a-ten-minute-journey-into-the-mequavis-that-exists-in-my-mind-no-really-check-this-out-another-dragon-ball-ai-in

It's down to $5.88 now because steem is less than $2 bucks!!!

What I don't like about this is that Steem will go back up, but I will not see a return here. The other side sitting on the steem will though... That kinda sucks... I'm basically giving my curation rewards away... 88 upvotes and I will get back way less than I put in... but Steem will bounce back and then therealwolf profits. Not saying he is doing anything bad or on purpose, just a side effect of the machine, but that blows... really... It took me several months to build up 10 SBD :P I'm a minnow, I'm only gonna have like 3 SBD now haha... not a big deal I know, but like I said, minnow, not easy earning steem...

But it does mean I can not even use the bot now... As it is 4 SBD minimum, and I won't even get back enough to big again haha :( not haha

But it does mean I can not even use the bot now... As it is 4 SBD minimum, and I won't even get back enough to big again haha :( not haha

Hi @nanocheeze yes you're right. And whilst it's no biggie in terms of $ it's a biggie in terms of all the hard work that went in. However as you've noted the value will go up again. I'm trying to put posts together as we speak to take advantage of that :) Gotta keep at it. I've taken a "relative" beating too lol. I don't know how much, don't know if I want to know. I moved my own money in that was in BTC to play and experiment. Thing is, this is a learning experience and it is persistence that will win at the end of the day!

Smartsteem is one of best bot than all others.

I went for this promotion with one of the posts... no idea how well or poorly the post did... but I went for it anyway because I believe in Steemit! Bought myself more steem power today as well. Go Steemit! (by the way, thanks for believing.)

Hey @smartsteem, I sent 20 SBD this morning but for some reason the bot failed to upvote my post. Could you please take a look? Thanks!

hey @smartsteem can you please vote me.. I will always share your post.. can you help me pls I always appreciate your post and work..

Great support and breakdown. Thanks!

@therealwolf .. btw, i love smartsteem i've been happy to use it and sounds like you're taking care of it.
Just 2 questions, re @smartsteem post, if you're only accepting SBD can you disable the steem option plse! or plse refund when we forget.

Also... I'm not totally sure why it's not better to buy votes within the first 30 minutes/straight away, so we can gain more visibility, ok, plus a bidbot for an even greater hit. In this post you suggest bidbot before buying votes, because of curator rewards. Ok, but for us we might get more votes because we've got votes earlier...? if you see what i mean. I can see it's no exact science

@smartsteem i will obviously send you steem/sbd. Thanks for informing us by your meaningful post. This post was resteemed by my 1500 followers.

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