Proxies for business are not an expense but an investment that should pay off. Arbitrageurs, SMM specialists, and marketplace sellers pay for proxies ranging from $5 to $500 a month, but not everyone calculates the actual return on these expenses. In this article, we will discuss how to properly calculate the ROI (Return on Investment) of proxies for different business models and understand when the investment pays off and when you are overpaying.
We will show specific calculation formulas, real examples from Facebook Ads arbitrage, Instagram account management, and Wildberries scraping. You will learn how much each dollar invested in proxies should bring in and how to optimize expenses without losing work quality.
Basic ROI Calculation Formula for Proxies
ROI (Return on Investment) shows how much profit you get for every ruble or dollar invested. The basic formula looks like this:
ROI = ((Profit from Using Proxies - Proxy Costs) / Proxy Costs) × 100%For example, if you spent $100 on proxies per month, and the additional profit from their use was $500, then:
ROI = ((500 - 100) / 100) × 100% = 400%This means that every dollar invested in proxies brought you $4 in net profit. But how do you calculate the profit specifically from proxies? Here, it’s important to understand what proxies provide specifically for your business:
- For Arbitrageurs: the ability to launch more ad accounts without bans → more traffic → more conversions
- For SMM Specialists: managing multiple client accounts without blocks → retaining clients → stable income
- For Sellers: up-to-date data on competitor prices → proper pricing → increased sales
It is important to understand the difference between direct and indirect profit. Direct profit is the money you earned directly because of the proxies (for example, you launched an additional ad account and made $300 profit from it). Indirect profit is the avoidance of losses (for example, you did not lose a client account worth $500 a month).
ROI of Proxies in Traffic Arbitrage: Calculation Example with Facebook Ads
In traffic arbitrage, proxies solve a critical task — they allow you to run multiple ad accounts simultaneously without the risk of chain bans. Let's consider a real example of calculating payback for an arbitrageur who works with Facebook Ads through the anti-detect browser Dolphin Anty.
Initial Data:
- Number of ad accounts: 10
- Average profit per account: $200 per month
- Proxy costs: 10 mobile proxies at $15 each = $150 per month
- Costs for anti-detect browser: $89 (Team plan in Dolphin Anty)
Total income from 10 accounts: 10 × 200 = $2000 per month. Total infrastructure costs: 150 (proxies) + 89 (browser) = $239.
ROI = ((2000 - 239) / 239) × 100% = 737%Thus, every dollar invested in proxies and anti-detect brings $7.37 in profit. Payback occurs in the first month of operation. But this is the ideal scenario. Let's consider a more realistic option taking bans into account.
Realistic Scenario Considering Risks:
- Out of 10 accounts, 2 get banned within a month (even with proxies)
- Average profit from the surviving 8 accounts: $200
- Time to farm new accounts to replace the banned ones: 10 hours × $20/hour = $200
Income: 8 × 200 = $1600. Costs: 239 (infrastructure) + 200 (farming time) = $439.
ROI = ((1600 - 439) / 439) × 100% = 264%Even considering bans and the time to recover accounts, the ROI remains very high — 264%. This means that the investment in quality proxies pays off many times over. An important point: if the arbitrageur worked without proxies, a chain ban would have destroyed all 10 accounts simultaneously, resulting in a loss of $2000 in potential income plus the time to farm new accounts.
Tip: For Facebook Ads and TikTok Ads arbitrage, mobile proxies show the best price/quality ratio. Residential proxies are more expensive but do not provide a significant advantage in reducing bans for ad accounts.
Payback of Proxies for SMM Agencies and Multi-Account Management
For SMM specialists and agencies, proxies are insurance against losing client accounts. Losing even one Instagram account of a client can cost you a contract worth $500-2000 per month. Let's consider the ROI calculation for an SMM agency managing accounts on Instagram and TikTok.
Initial Data:
- Number of client accounts: 25 (Instagram and TikTok)
- Average fee for managing one account: $300 per month
- Proxy costs: 25 residential proxies at $8 each = $200 per month
- Costs for anti-detect browser AdsPower: $70 per month
Total income from clients: 25 × 300 = $7500 per month. Infrastructure costs: 200 + 70 = $270.
ROI = ((7500 - 270) / 270) × 100% = 2678%At first glance, the ROI seems unrealistically high, but it is important to understand the specifics of the calculation. Proxies do not generate income directly — they prevent losses. It is more accurate to calculate ROI through the cost of avoided risks.
Calculation through Avoided Losses:
Without proxies, the probability of account bans during multi-accounting is about 30-40% per month (according to statistics, Instagram and TikTok actively ban accounts that log in from the same IP). Let's assume that without proxies, you lose 8 clients out of 25 each month.
- Loss of income from 8 clients: 8 × 300 = $2400 per month
- Proxy costs: $270 per month
- Saved thanks to proxies: $2400
ROI = ((2400 - 270) / 270) × 100% = 789%Thus, every dollar invested in proxies saves you $7.89 in potential losses. This is a more realistic estimate for the SMM business. Moreover, this only accounts for direct losses — we do not consider reputational risks (clients will tell others that you "leaked" their accounts) and the time spent finding new clients to replace those who left.
Important: For Instagram and TikTok, IP address stability is critically important. One account = one proxy = one IP. Do not use rotating proxies for social media — this is a guaranteed ban.
ROI of Proxies for Sellers: Price Scraping and Competitive Intelligence
Sellers on Wildberries, Ozon, and Yandex.Market use proxies for scraping competitor prices, monitoring stock levels, and collecting reviews. Without proxies, marketplaces block access after 50-100 requests, making automatic monitoring impossible. Let's consider the ROI calculation for a seller with a turnover of $100,000 per month.
Initial Data:
- Turnover: $100,000 per month
- Average margin: 25%
- Number of SKUs in the assortment: 50 products
- Proxy costs: 20 residential proxies at $8 each = $160 per month
- Price scraper: $50 per month (ready-made solution)
Total monitoring costs: 160 + 50 = $210 per month. Now we need to evaluate what profit the current information about competitor prices provides.
Profit from Using Scraping:
- Thanks to up-to-date data on competitor prices, you adjust your prices twice a day
- This allows you to increase conversion by 5% (you are always in the top 3 by price)
- Additional turnover: 100,000 × 5% = $5000
- Additional profit: 5000 × 25% = $1250 per month
ROI = ((1250 - 210) / 210) × 100% = 495%The ROI is 495%, meaning that every dollar invested in proxies and the scraper brings $4.95 in additional profit. Payback occurs in the first month. An important point: we took a conservative estimate of a 5% increase in conversion. In practice, if you work in a highly competitive niche (electronics, clothing, cosmetics), proper pricing can lead to growth of 15-20%.
Another scenario for using proxies in e-commerce is multi-regionality. For example, you sell products on Avito in 20 cities in Russia. Without proxies, Avito sees that all ads are posted from one IP and bans accounts for multi-accounting. With proxies, each city = its own IP = legal posting.
| Use Scenario | Proxy Costs | Additional Profit | ROI |
|---|---|---|---|
| Wildberries Price Scraping (50 SKUs) | $210/month | $1250/month | 495% |
| Avito Multi-Regionality (20 cities) | $160/month | $800/month | 400% |
| Monitoring Competitor Stock on Ozon | $160/month | $600/month | 275% |
How to Reduce Proxy Costs Without Losing Efficiency
Optimizing proxy costs directly affects ROI. Here are proven ways to reduce expenses by 30-50% without compromising work quality:
1. Choose the Right Type of Proxy for the Task
Do not use expensive mobile proxies where residential ones are sufficient. For example, for scraping marketplaces, residential proxies at $8 work just as well as mobile ones at $15. Savings: $7 on each proxy per month.
| Task | Optimal Proxy Type | Average Cost |
|---|---|---|
| Facebook Ads, TikTok Ads | Mobile Proxies | $12-18/month |
| Instagram, TikTok (organic) | Residential Proxies | $6-10/month |
| Marketplace Scraping | Residential Proxies | $6-10/month |
| Mass Scraping (low risk) | Data Center Proxies | $2-5/month |
2. Use One Proxy for Multiple Tasks (if they do not conflict)
If you are simultaneously managing a client’s Instagram account and scraping competitors in the same niche, you can use one proxy for both tasks. The main rule is: one proxy = one social media account, but you can add scraping if the volume of requests is small (up to 1000 per day).
3. Eliminate Unused Proxies
Conduct an audit: how many proxies do you actually use daily? It often happens that out of 30 paid proxies, only 20 are actively working. Disable the unused ones for a month and see if it affects the results. Savings: up to 30% of the budget.
4. Choose a Provider with Flexible Pricing
Some providers offer pricing based on traffic rather than time. If you use proxies irregularly (for example, scraping prices once a week), a traffic-based plan will be more cost-effective than a fixed monthly payment. Savings: 20-40% for irregular use.
Comparison of Costs and ROI of Different Proxy Types
Different types of proxies have different costs and effectiveness for various tasks. Let's compare the three main types based on criteria such as price, reliability, and ROI for typical business tasks.
| Proxy Type | Average Price | Reliability for Social Media | Reliability for Scraping | Typical ROI |
|---|---|---|---|---|
| Mobile | $12-18/month | Excellent (95%) | Good (85%) | 300-700% |
| Residential | $6-10/month | Good (85%) | Excellent (95%) | 400-800% |
| Data Centers | $2-5/month | Poor (30%) | Average (60%) | 200-400% |
As seen from the table, residential proxies show the highest ROI — they are cheaper than mobile ones but almost as effective for most tasks. Mobile proxies are justified only for working with Facebook Ads and TikTok Ads accounts, where maximum protection against bans is required.
Example of Calculating the Optimal Proxy Set for a Comprehensive Business:
Suppose you are simultaneously engaged in traffic arbitrage (5 Facebook Ads accounts), managing client Instagram accounts (10 accounts), and scraping prices on Wildberries (30 competitors). The optimal configuration:
- 5 mobile proxies for Facebook Ads: 5 × 15 = $75
- 10 residential proxies for Instagram: 10 × 8 = $80
- 10 residential proxies for scraping Wildberries: 10 × 8 = $80
Total: $235 per month. If you had used only mobile proxies for all tasks, the costs would have been 25 × 15 = $375. Savings: $140 per month or $1680 per year.
Break-Even Point: When Proxies Start Paying Off
The break-even point is the moment when the profit from using proxies equals the costs associated with them. For different business models, this point occurs at different times.
Traffic Arbitrage: 1-7 Days
In arbitrage, payback occurs the fastest. If you launched an ad campaign with a profit of $50-100 per day per account, then the costs for proxies ($15 per month = $0.5 per day) pay off on the very first day of operation. Break-even point: 1-7 days depending on the niche and profit.
SMM Agencies: 1 Month
For SMM agencies, payback is calculated differently — through avoided losses. If without proxies you lose 2-3 clients per month (at $300-500 each), and with proxies these losses are reduced to zero, then payback occurs in the first month. Break-even point: 1 month.
E-commerce and Scraping: 2-4 Weeks
For sellers, payback depends on turnover and margin. With a turnover of $100,000 per month and a margin of 25%, an additional 5% conversion due to current prices yields $1250 in profit. Proxy costs of $160-210 pay off in 2-4 weeks. Break-even point: 2-4 weeks.
Rule: If proxies have not paid off within the first month, reconsider your usage strategy. You may be using too expensive a type of proxy or have inefficiently set up processes.
Conclusion
Calculating the ROI of proxies is not abstract math but a concrete tool for making business decisions. We examined three main business models: traffic arbitrage with ROI of 260-700%, SMM agencies with ROI of 400-800% (through avoided losses), and e-commerce with ROI of 275-495%. In all cases, quality proxies pay off in the first month of use.
Key takeaways for maximizing ROI: choose the type of proxy strictly for the task (do not overpay for mobile where residential is sufficient), regularly audit usage and disable unused proxies, and consider not only direct profit but also avoided losses (especially relevant for SMM). Properly selected proxies are not an expense but an investment with ROI from 200% to 800%.
If you work with Facebook Ads or TikTok Ads accounts, we recommend starting with mobile proxies — they show the best reliability-to-cost ratio for arbitrage. For multi-accounting on Instagram, marketplace scraping, and competitive intelligence, the optimal choice is residential proxies, which provide high anonymity at a lower cost.