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. Your results may vary.
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