A survey of my clients revealed 89.6% of all marketing campaigns were profitable and produced an average revenue increase of 9.7 times expenses! As a comparison, if 90% of your investments gave you almost 10 times your money back, you would ask yourself why you had not invested sooner. The data below reflects specific clients and personal experience.
Consultant |
Lab |
CFP |
Software |
|
| 1. Pieces mailed | 100,000 |
5,000 |
5,000 |
5,000 |
| Responses | 500 |
100 |
50 |
150 |
| Response % | 0.50% |
2.00% |
1.00% |
3.00% |
| Close ratio | 10% |
33% |
50% |
15% |
| New clients | 50.0 |
33.0 |
25.0 |
22.5 |
| Avg client $ | $5,000 |
$12,000 |
$10,000 |
$50,000 |
| GROSS REV $ | $250,000 |
$396,000 |
$250,000 |
$1,125,000 |
|
|
||||
| 2. Printing/Set-up | $11,500 |
$5,500 |
$5,500 |
$5,500 |
| Labels | 10,015 |
515 |
515 |
515 |
| Mailing | 20,000 |
1,000 |
1,000 |
1,000 |
| Overhead % | 0.35 |
0.67 |
0.50 |
0.50 |
| Overhead $ | $87,500 |
$265,320 |
$125,000 |
$562,500 |
| TOTAL COSTS | $129,015 |
$272,335 |
$132,015 |
$569,515 |
|
|
||||
| 3. PROFIT | $120,985 |
$123,665 |
$117,985 |
$555,485 |
|
|
||||
| 4. Marketing expenses | $41,515 |
$7,015 |
$7,015 |
$7,015 |
5. Return on investment |
291% |
1,763% |
1,682% |
7,919% |
(800) 795-2150
(303) 770-2150
e-mail warren@rosaluk.com
Copyright 1998-2009 by Warren J. Rosaluk
Warren J. Rosaluk
7090 South Fillmore Court
Centennial, Colorado 80122