Are You Getting a Good Return On Investment?

Are You Getting a Good Return On Investment?

How much do you spend on you marketing? Do you know what your Return On Investment is?

A common definition of Return on Investment involves looking at the cost of a marketing campaign relative to the profit generated.

For example:

You invest £1,000 into a campaign and sell 30 items, each of which brings with it a profit of £50. Your total profit on the items themselves is £1,500, before you deduct the cost of the campaign.

Taking off the campaign costs i.e. £1,500 profit less campaign cost £1,000 = £500 profit for the campaign.

The return gained is £500 from your original marketing investment of £1000.

Your Return on this Investment is £500 divided by £1000 = 50% ROI.

Working out your return on investment ensures that you are spending your money on the best form of marketing.

This is a simple calculation of Return of investment without factoring in the element of time.

Calculating the ROI it’s not just for large companies…. Everyone in business needs to know the sums.

  • Make sure you know how much you are spending.
  • If it’s working them repeat if not then try something else
  • ALWAYS make sure you know the sums

Alway working out your return on investment as it will ensure that you are making the most of your marketing budget.

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