How to make a 4 to 1 (Minimum) Return on Investment on your marketing, every month!

Are you ever frustrated with your marketing, advertising, or business development activities? Wondering if they are working? Confused about how to measure their effectiveness? 

I used to feel that way too, and so have ALL of the other 100,000 business owners I’ve helped. That is until they started using my Marketing Plan Template and Monthly Marketing Report Template!

Using the annual plan and monthly report will help every business owner (that means you) to plan and execute on the most profitable and high ROI activities! This means higher ROI for you, and higher PROFIT too!

How do you make a huge ROI on our marketing?

  1. Calculate ROI on every single activity. 
  2. Use that data to make better marketing decisions!
  3. Raise your overall return on investment on your marketing time AND money spent, as well as increase your net profit from the business!

Calculate ROI on every single marketing/advertising/business development activity.

  1. Ensure all team members, including you if you do any marketing, advertising, or business development activities, are tracking their time and activities accurately in their calendars. This way you will know how much time was spent on each activity, ie Facebook, Instagram, Google, blogs, website, dealing with contractors or ads managers, etc. 
  2. Once you know that, you can calculate the real cost (investment) of each activity
    1. First take each person’s time (hours) who was involved in the activity (let’s do Facebook as an example) for last month. Then multiply their number of hours by their hourly pay rate, then multiply by their labour burden. I would go with 1.3 for the labor burden if you pay benefits, CPP, EI, WCB, etc. If you only pay CPP and EI for that employee use 1.15 as the labour burden multiplier. 
    2. Then add the amount of money you spent on Facebook ads.
    3. Also, add any other time from other employees, contractors, time spent with those people, etc. Don’t miss anything! This calculation is important. If you spend 20 minutes per month talking to your Facebook ads person you should include that! **To get your own cost per hour just divide your income from that company last year by the number of hours you put into that company. *****SEE ALL OF THE HELPFUL THINGS WE CAN DO WITH ACCURATELY FILLED-IN CALENDARS???? They’re so useful for so many different calculations, data analysis, and decision-making! Please do it if you’re not already, and make sure your team does too!!!****** This will give you the cost for Facebook for your month.
  3. Next, calculate the revenue that came in from each source!
    1. For our Facebook example, by looking at the customers from last month that told you they heard about you from Facebook we can determine what our return is! *Now, you obviously can’t do this if you’re not keeping track of and asking where EVERY customer or potential customer heard about you AND asking where else they may have heard about you! MAKE SURE YOUR TEAM IS TRACKING THIS!! So, the amount of revenue that came in last month from the people who came in because they saw you on Facebook is your “return”.
  4. Now we have the investment and the return! So we calculate our ROI or return on investment by dividing the “return” by the “investment.” See below for our Facebook example:


Let’s say you spent (invested) a total of $1200 last month between TIME x LABOR BURDEN plus AD SPEND, plus contractor costs ie Facebook ads manager. 


Let’s say you have $4,000 in revenue from last month that came from clients who told you they heard about you on Facebook. 


=return / investment

= 4,000 / 1,200

= 333% or 3.33 times Return on Investment!

Now that is good, but it’s not hitting our minimum goal of a 4 to 1, or 400% return on every dollar we spend in our business! 

Use that data to make better marketing decisions!

Now, you use your data, and the ROI per activity to make DATA-DRIVEN DECISIONS, and do MORE of the high ROI activities, and LESS or NONE of the lower ROI activities!

This will increase not only your marketing ROI overall but also your business’s profits overall! AND we can increase it EVERY MONTH by repeating the process!!!!!!

Enjoy your ROI and increased PROFIT! 

You’re on your way to 7000% ROI just like my businesses and my clients’! Enjoy and celebrate this! AND, start looking for more great team members to handle all of your new business!

Business can be better™ and it should be!

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Kelli-Rae Tamaki

Kelli-Rae is truly passionate about successful business, and believes it can always be better, which is why she has spent 22 years studying, running, coaching and consulting with businesses, just like yours.
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