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                                                                            Chapter One - Start Here    FAQs    Sample Ads   Price List    Contact Us  

 

..........INDEX.........

1. Chapter One Start Here

2. What Your Print Ads Can Do

3. Five Best Marketing Ideas

4. Advertising Planning

5. Advertising Budgeting

6. Beat Your Competitors

7. Successful Targeting

8. Better Qualified Prospects

9. Price Strategy in Advertising

10. How To Fail In Advertising

11. Advertising Law

12. Using Humor in Advertising

13. Image, Credibility, & Trust

14. The Elements of Design

15. Attention is First

16. Branding Strategy

17. Logos That Work

18. More Effective Advertising

19. Ads For The Human Brain

20. Copywriting That Works

21. Using Media Effectively

22. Newspaper Advertising

23. Advertising  on Cable TV

24. Effective Brochure Design

25. Word of  Mouth Advertising

26. Yellow Page Advertising

27. Direct Mail Advertising

28. Testing and Tracking Ads

29. Why Follow Up Works

30. The Advertising Calendar

31. ROI Calculator

32. Integrating Your Marketing

33. Non-Profit Advertising

34. Working With Design Firms

35. Working With Professional Advertising

36. Sample Ads

37. Contact Us

38. FAQs

39. 100% Guarantee

 

 

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Chapter 31

Return On Investment Calculator

 

 

View All

Sample Ads

 

Price List

 

 

This is a simple outline on how to calculate your advertising return on investment.   

 

Are You Unhappy With The Number Of Customers Your Ads Bring?

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Return on Investment Calculator For A Yellow Pages Ad

 

FACTORS

EXAMPLE

1

Advertisement Cost

$8000

2

Total Calls Received from Ad

1,091

3

Cost per call received [#1 divided by # 2]

$7.33

4

Percentage of calls that generate a sale

33%

5

Number of new customers from phone calls [#4 x #2 divided by 100]

360

6

Percentage of sales from Yellow Page ad generated from phone calls

90%

7

Percentage of yellow page referrals that result in walk in customers

10%

8

Total new customers [phone + walk-in] generated from yellow pages

[100 x #5 divided by #6] [100 x 360 / 90% = 400 new customers]

 

400

9

Annual gross sales per new customer

$300

10

Total new sales [400 customers x $300 = $120,000]

$120,000

11

Company Profit Margin

20%

12

Gross Profit [#10 x #11] [$120,000 x 20% = $24,000]

$24,000

13

Adjusted Profit [#12 - #1] [$24,000 - $8000 = $16,000]

$16,000

14

Profit per new customer YEAR 1 [#13 / #8]  [$16,000 / 400 = $40]

$40

15

Return on Investment [#13 / #1] [$16,000 / $8,000 = 2:1 return]

2 to 1 return

 

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