Definition
Yield on investment is the financial return generated from an investment, expressed as a percentage. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Yield on investment. Once they agree it means “Financial return generated from an investment, expressed as a percentage”, the argument becomes a decision.
Common mistake
Using Yield on investment as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Yield
Return on investment expressed as a percentage of the initial investment.
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Yield management
Strategy of maximizing revenue by adjusting prices based on demand and capacity.
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Year-over-year (YoY) growth
Percentage change in a metric compared to the same period in the previous year.
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YOLO (You Only Live Once)
Philosophy encouraging taking risks and seizing opportunities in life and business.
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