What is your ROI on your marketing and sales efforts? If you have a call center working for you and what is the ROI on that? So what is the return on investment for marketing and sales for you? So let’s cut straight to the chase. A good marketing ROI is a ratio of 5:1. The Golden Ratio for Marketing and Sales ROI is 5:1 For every dollar that you spend on marketing and sales, you should get $5 back in return. Now that's considered the middle of the curve, so that's considered average. A really exceptional marketing campaign can have a return of 10:1 but that's more the exception and not the rule. Marketing and Sales Cost Factors Now having this marketing and sales ratio, it will give you a rule of thumb to go by to see how well you're doing for your marketing efforts. Now, what type of marketing costs do you factor in to this ratio? You would put in your variable expenses, so you wouldn't include personnel costs, which is a fixed cost. These are your variable costs: Marketing agency investment Call center investment Google ad words Facebook Ads campaign spend Display ads investment Outside blogging and content investment And if you have an outside social media manager, your social media management costs.

1. WHAT IS YOUR
SALES AND
MARKETING ROI?
What is your ROI on your marketing
and sales efforts? If you have a call
center working for you and what is
the ROI on that? So what is the
return on investment for marketing
and sales for you? So let’s cut
straight to the chase. A good
marketing ROI is a ratio of 5:1.
ROIROI
THE GOLDEN RATIO
FOR MARKETING AND
SALES ROI IS 5:1
WHY 5:1 IS THE PREFERRED
RATIO FOR MARKETING
AND SALES
MARKETING AND SALES
COST FACTORS
For every dollar that you spend on
marketing and sales, you should get
$5 back in return. Now that's
considered the middle of the curve,
so that's considered average.
A really exceptional marketing
campaign can have a return of 10:1
but that's more the exception and
not the rule.
If you're getting a 2:1 ratio, that would be
really bad because you wouldn't
necessarily be covering the cost of making
your product and marketing it. So at a
minimum you want to be able to cover the
cost of making your product and
marketing it.
Depending on your costs of goods sold
and your economics really help you drive
whether your marketing and sales ratio
should be higher or lower. For example, if
you put $100 into marketing a $200
product, but it costs you $100 to make
that product, you're breaking even. You’re
not making a profit.
Now having this marketing and sales ratio, it will give you a
rule of thumb to go by to see how well you're doing for your
marketing efforts. Now, what type of marketing costs do you
factor in to this ratio? You would put in your variable
expenses, so you wouldn't include personnel costs, which is a
fixed cost. These are your variable costs:
MARKETING AGENCY
INVESTMENT
CALL CENTER
INVESTMENT
GOOGLE AD WORDS
FACEBOOK ADS
CAMPAIGN SPEND
DISPLAY ADS
INVESTMENT
OUTSIDE BLOGGING AND
CONTENT INVESTMENT
AND IF YOU HAVE AN OUTSIDE SOCIAL MEDIAMANAGER,
YOUR SOCIAL MEDIA MANAGEMENT COSTS.
So this is why a ratio of marketing and sales ratio of 5:1 is average and
10:1 is exceptional. Now remember, we're also taking the total
customer lifetime value into account in this equation. So for every $1
you spend, you should get $5 in return. Now that $5 should be your
total customer lifetime value.
It should not just be the first transaction that your customer has with
you. It should be a total customer lifetime value. To illustrate, if you
sell a book and you have multiple titles for sale, your total customer
lifetime value isn't just the first book that a customer bought, which is
$5. It could be $30 or $40 when he buys subsequent books from you.
If you're selling a software product or a SaaS product, it's not just the
first month of revenue, it's the entire contract length that they decide
to buy your product. For example, if you first acquire a customer for
Facebook ads, you should still contain to credit the Facebook ad
campaign for any additional sales you make for that customer.
Now, this 5:1 ratio is just a pass fail test. It's a simple rule of thumb.
You can decide whether you want that rule of thumb to be higher or
lower than five to one.
Remember what the ultimate goal of marketing and sales is to grow
your revenue, which is done to grow your business. It's to grow your
business and that's what we help you do.
CUSTOMER
TOTAL
LIFETIME
VALUE
M a r k e t i n g
https://www.theiamarketing.com/meetings/islin/7-parts-leads-that-buy-assessment