Many of you have heard me talk about the marketing term ROI (Return on Investment). This is used often by marketers all over the net and I want to elaborate a little bit to make sure you understand the term, and also make sure you are not selling yourself short.
ROI directly relates to how much you spend on advertising, and how much profit you gain on that particular advertisement. Sometimes you will lose money, but a negative does not always mean that you will ultimately lose money.
Lets say you spent $100.00 in advertising this month and only generated $70.00 in profit. You might automatically assume that you lost $30.00. It is a normal assumption but it might be dead wrong!
I concede that you are out $30.00 at the moment, but what you may not know is that it can turn a profit and this is how.
The customers that purchased from you can become repeat customers if you provide a good and positive experience for them. Repeat customers, can generate more money over the lifetime of your business. They can also tell people about the amazing product you sold them and become a great asset to your business.
So this is what matters most. Provide a great service or product and turn those customers into repeat customers and you will make your $30.00 loss back easily.
Just something to think about.
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You seem to know a lot about this. This is good blog. A great read. I’ll certainly be back.
Thanks for the info – nice post.
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