Measuring Your Return on Investment

Measuring Your Return on Investment

Posted by admin, on 5/8/2010, in category Vendors

Measuring ROI

The return on investment for spending $400 on an Eventective marketing and lead generation program. 

Purchase Enhanced Listing on Eventective = $250 (prices vary)
Purchase 75 leads over 3 month period at $2.00 per lead (lead price reflects 20% discount on lead purchases because you are an advertiser) = $150
 
Direct marketing responses have a rate of 1% or less and a close rate of less than 50%. 
 
Keeping these factors in mind will give you a perspective of what to expect from lead generation.
- You connect and have meaningful conversations with 8 planners out of the 75 leads you purchased. 
- 3 of the 8 planners book your services and each spend $1200.
- The revenue you generate is $3600.  The return on investment is over 900%. 
 
Your return on investment will be determined by the number of leads you purchase and how you manage and respond to those leads. 
 
Do not expect to purchase 5 leads and receive responses and business because a 1% return rate on 5 leads is less than 1. 
 


 

Many thanks to Jerry Bazata for this presentation!


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User Comments
Posted by
gigi
Tuesday, June 29, 2010 7:09 PM
well, there are more factors to consider in the math formula:  the value of my time spent following up on all those leads.... the many many hours spent by myself on the phone,email, meeting at the client location, etc.  I'm currently spending about $2K per year on advertising, and my net is about $200 per event.  That means it takes 10 events just to pay for the advertising.  In my line of business, I can't raise my prices, I need have a leaner ad budget, and increase bookings.
Posted by
Debi Smith
Friday, August 03, 2012 12:55 PM
Leslie Town Centre in Cookeville, TN has had a courtesy listing in the past. We are interested in a premium listing and what the price would be. Also, it appears that only Nashville and Memphis are choice of locations on the initial page. When I search for venues in Cookeville, it is not clear as to the local choices. Please give me a call on Monday. My phone is 931.372.7200
Thanks

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