Monday, February 19, 2007

Marketing ROI Formula

Here's a simple form you can use (actually you can cut and paste into a form) to see what your return on investment is for any marketing piece or tool you use.


Date:

Marketing or Advertisement:

Offer:

Media:

Insertion date:

Cost to produce ad or piece:

Cost to run ad (if additional):

Total ad cost:

Profit expected for each sale:

No of sales to breakeven:

No of enquiries from ad or piece:

No of sales from ad:

Return on investment – (No of sales from ad x profit from each sale – total ad cost):

Return on investment divided by total ad cost x 100: (% ROI)

This can work for ads, mailings, referral cards - anything you product and can track. You'll quickly get a picture of what works and what doesn't.