Calculating the Return on Your Investment for Digital Marketing with
Purpose Launch, LLC
Before you use the calculator below to help you think through your decisions regarding digital inbound content marketing, we want to state a few important facts about marketing ROI when it comes to inbound and online marketing.
ROI is difficult to determine. There are many considerations that need to be factored into the formula. Frankly, most small businesses don't have the personnel budget to hire the marketing professional needed to help make these calculations. (We sure don't.) For this reason, general ROI calculations are the best most of us can do and are totally fine for decision-making. If you do feel the need to dig deeper, a good accountant can help you come up with some good data for deeper calculations.
To figure the most accurate ROI quickly, you'll need your net profit, not just gross income per acquisition. If you happen to know that number, use it in the "Value of a Customer" field below. If you don't know it offhand and can't get it easily, that is okay. You will still get a pretty accurate result with your gross income per customer or gross profit per sale.
ROI is difficult to determine. There are many considerations that need to be factored into the formula. Frankly, most small businesses don't have the personnel budget to hire the marketing professional needed to help make these calculations. (We sure don't.) For this reason, general ROI calculations are the best most of us can do and are totally fine for decision-making. If you do feel the need to dig deeper, a good accountant can help you come up with some good data for deeper calculations.
To figure the most accurate ROI quickly, you'll need your net profit, not just gross income per acquisition. If you happen to know that number, use it in the "Value of a Customer" field below. If you don't know it offhand and can't get it easily, that is okay. You will still get a pretty accurate result with your gross income per customer or gross profit per sale.
ROI is broader than just immediate new customer acquisition. You might say that it's all about the bottom line. While that's true to a degree, there is also truth to the idea of value for your investment. For instance, with print or radio advertising, your investment pays for an ad for only a short time period. After that, it's gone, done, finished and never to be seen again unless you pay more cash.
However, content and inbound marketing provide lasting value in the sense that it creates helpful content on your website that finds its way into the Google search world and can drive traffic (potential customers) to your website for years to come. This type of marketing not only drives traffic, but it also continues to credential you in the long-term as an authority in your niche and also continually promotes your brand 24-7 year after year.
Any benchmarks or guides out there? I have searched and searched through benchmarks and averages for marketing ROI to post here as a guide. I can't find any that seem reliable. The formula I am using below is the formula most experts at places like Marketing MO, Forbes and Investopedia recommend.
If you read the articles I link to at the bottom of the page, you'll see why no such benchmark ROI resource exists. A quick summary of the articles from Forbes, Huffington Post and others are there to show the many benefits involved in SEO and inbound marketing, and the difficulty there is to determine a standard best practice percentage. In the quest to acquire new customers, each business places different values on these benefits, making industry-wide benchmarking difficult.
Without elaborating any further, here is our simple Return on Investment Calculator for our Purpose Launch services.
If we have not discussed a price with you, you can check out our basic pricing page to get an idea of your monthly cost. We usually recommend at least a six-month agreement and highly recommend an ongoing arrangement, so six or twelve months is a good input for that field.
Let us know what you are finding and how this influences your thinking. We would love to know more pro or con. You can reach us using the form below.
However, content and inbound marketing provide lasting value in the sense that it creates helpful content on your website that finds its way into the Google search world and can drive traffic (potential customers) to your website for years to come. This type of marketing not only drives traffic, but it also continues to credential you in the long-term as an authority in your niche and also continually promotes your brand 24-7 year after year.
Any benchmarks or guides out there? I have searched and searched through benchmarks and averages for marketing ROI to post here as a guide. I can't find any that seem reliable. The formula I am using below is the formula most experts at places like Marketing MO, Forbes and Investopedia recommend.
If you read the articles I link to at the bottom of the page, you'll see why no such benchmark ROI resource exists. A quick summary of the articles from Forbes, Huffington Post and others are there to show the many benefits involved in SEO and inbound marketing, and the difficulty there is to determine a standard best practice percentage. In the quest to acquire new customers, each business places different values on these benefits, making industry-wide benchmarking difficult.
Without elaborating any further, here is our simple Return on Investment Calculator for our Purpose Launch services.
If we have not discussed a price with you, you can check out our basic pricing page to get an idea of your monthly cost. We usually recommend at least a six-month agreement and highly recommend an ongoing arrangement, so six or twelve months is a good input for that field.
Let us know what you are finding and how this influences your thinking. We would love to know more pro or con. You can reach us using the form below.
Links to articles on Calculating Return on Investment in Inbound, Content and SEO marketing.
Forbes
Huffington Post
Marketing Mo
Forbes
Huffington Post
Marketing Mo