• ChampagneWhat’s working in your business and what isn’t? 

    I’m asking this question because I’m genuinely curious.  I’m also seeing a lot of busy work that isn’t generating real results. Worse yet, I’m hearing stories from really smart and savvy people about how they’ve been duped in business. Perhaps you’ve been promised one thing and someone delivered another or  maybe you didn’t receive what you expected at all?  That’s NOT OK in my book.   In fact, when it comes to ROI (return on investment)  not receiving what you agreed upon is not a fair exchange at all.

    I know that’s the worse case scenario but it’s happening all too often. One way to avoid being disappointed or duped is to do your due diligence by checking references and speaking to satisfied customers.

    One of the things I take great pride in is over-delivering.

    I absolutely expect people to deliver on their promises and I’m sure you do, too. When they don’t it hurts. It hurts your bottom line, your business relationship and their reputation. It’s important to me to make sure my preferred clients get a solid return on investment (and that goes beyond “getting what you pay for”).

    Here’s a super simple formula to determine ROI (return on investment):

    Benefits of Investment – Cost = ROI.

    1) List the benefits of a recent investment (time saved, money earned, goals achieved) and assign a value to the outcome or list the actual money made from a specific project.

    2) List the cost of the project (what did you pay a person or company to do for you?)

    3) Now subtract the cost (what you paid) from the Investment/Benefits (total results produced) 

    Use this formula to estimate ROI on a recent project (Seriously, just take a few minutes to do this).  

    Okay, so this formula isn’t an exact science and I’m not a mathematician but I do know this… this will give you a good idea of how to gauge ROI.

    What did you discover?  (I want to know, so, please share in the comments below so we can celebrate your successes or maybe chat about ways to improve them).

    champagne[1]Here’s what I know. My clients are getting some really incredible ROI. Recently one of my preferred clients followed my advice to add a VIP day to their offerings and in one sale they more than tripled the cost of doing business with me. YAY!  I’m still doing a happy dance for them. We partnered on a web copy and strategy package and the consulting/coaching included is what gave them such a great return on investment.

    A couple of weeks ago a new testimonial landed in my inbox and it made me cry (tears of joy, of course).  One of my preferred clients shared her success with me.

    She reported that after she invested in my Content Strategy Plan process and we collaborated on her BIG vision, mapped out ways to reverse engineer her most powerful solutions into even more profitable revenue streams, her business is a million dollar business.

    I cannot even fathom the ROI on that investment but I do know that the benefits far outweigh the initial cost (investment) of doing business with me.

    I cannot guarantee you’ll get the same results AND I can guarantee when we work together, my focus is on your BIG vision.  I will serve as your critical thinking partner and together we’ll map out ways you can achieve your goals no matter how BIG they are.

    So, think about what’s working in your business and think about what isn’t working and make a plan to partner with the right people to help make your dreams become reality.

    Tell me about the greatest ROI you’ve ever achieved in the comments below?

    Lisa Manyon

    Lisa Manyon is "The Business Marketing Architect" a content and copywriting strategist for mission-driven entrepreneurs. She's the creator of the NEW marketing model for success (as seen in Inc. Magazine) that's changing the way people market today. She specializes in powerfully communicating your marketing message to increase results via Manyon Marketing Web Makeovers, website copy packages and content strategies to effectively market your business. She offers a free Copywriting Action Plan and marketing resources on her award winning blog. Her consulting and coaching is known to help produce million dollar results www.writeoncreative.com/blog

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    16 responses to “How to Determine ROI (Return on Investment)”

    1. Hi Lisa, great article. You’ve given me food for thought. I know about ROI but I haven’t actually put it to the test with recent programs. There have been a few programs I’ve invested in and the networking connections and subsequent work together far outweighed the investment. I recently invested in someone to help with a webpage and I do plan on measuring that ROI as I roll out the course.

      • Lisa Manyon says:

        Thank you, Tandy,

        Glad I could spark something for you. When measuring the ROI of the web page, be sure to factor in the time is saved you to have someone else do the work in addition to conversion rate.

        Write on!~

        Lisa

    2. Agreed – it’s always important to figure out the ROI! Sometimes the benefits come a bit later so I like to include those too. An example is my Anxiety Summit – I’m still seeing benefits 6 months later

      • Lisa Manyon says:

        Trudy,

        You are spot on. As you know, the ROI on publicity and press releases can continue long after the initial push. There are many ways to calculate ROI and that’s why I mentioned factoring time saved, connections made and more.

        Write on!~

        Lisa

    3. Lisa, congratulations on helping your client achieve great success. I completely agree with you that it is very distressing when someone does not follow through on something they promised. I have had that happen to me recently. Costly projects for me involve excess amounts of time wasted on a project that does not go through. The longer I’m in business the more I know to search for projects and proposals that will be winners from the start!

      • Lisa Manyon says:

        Mary Ellen,

        I’m sorry to hear that you had that experience and I’m excited that you can now discern some of the less than favorable opportunities right away. That’s a gift.

        Write on!~

        Lisa

    4. Thanks for sharing this. And for the story, always great to hear success stories. As I’ve been figuring out my ROI I’ve learned that things that I liked weren’t necessarily returning enough to make it worthwhile to continue. It’s definitely a quick and easy business tool.

    5. Sue Painter says:

      Lisa,
      It’s always good to hear when someone gets a great ROI from investing in her business. I find that people are hesitant when they can’t vision their business and don’t really believe they can create their own economy.

    6. Mitch Tublin says:

      Lisa,
      Most people fully understand the concept of return
      when they are looking at their stock portfolio, however,
      do not utilize the same skills and knowledge when considering how it applies to their business.

    7. Lisa,
      As you know, my focus is on customer service, and it’s exciting to read about the successes you’ve created for your clients by focusing on their ROI. Your client testimonials just keep rolling in too. At an event I attended earlier this year, I heard one of your clients share how happy he’s been working with you. Love the question you pose in this post, and the value you deliver.

      • Lisa Manyon says:

        Marilyn,

        Thank you for the kind words the lovely affirmation about my work. It feels great to know that my preferred clients are being customer evangelists. You made my day.

        Write on!~

        Lisa

    8. When I was part of a very strategic networking group, where attendance was mandatory and referrals required, I often found that people didn’t know what ROI meant to their business when it came to this type of investment.

      Like you showed above with your equation to determine ROI, they only looked at the hard costs and not their time. Since we can all make more money, but there is no way to make more time (or at least not that anyone has shared with me) our biggest cost is our time. The benefit ($, learning, connections, etc.) must justify the time you put in.

      Love your brilliance Lisa – Thanks for the fab info.

      • Lisa Manyon says:

        Barb,

        What an excellent example about the networking group. I have heard it said that your network is your net worth. A good question to ask when it comes to being a part of a group might be “is it WORTH my time.”

        I appreciate the comment and am glad we are connected.

        Write on!~

        Lisa

    9. Lisa, thank you for this.. great points!!! There are so many ways to look at ROI and one of the ways is to also view it from the perspective of opportunity cost as well… There is great wisdom in looking at everything we do in business and ensuring there is ROI in all we do! Thank you..

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