What is a ROI?

Well, to explain that, we first need to understand what is meant by investment (defined here as an outlay of your cash and/or time).

An investment  example in business could be advertising, the cost of your time and your staff or contractors time, employee training, new technology or software, operational costs and the list goes on.

It’s easy to identify investments — the hard part is measuring the impact and benefit of the investment.

Ultimately your investment should be trying to achieve a strategy.

What I mean by this is your strategy might be something like this….

…Upskill and train your sales team and the benefit (or return) is to get more sales for the same investment or cost of paying your sales team.

Benefits (or the return) of this strategy could include more sales, increased customer satisfaction, new customers, customer retention, lowering overall cost per sale and up-sells. There are too many to list but this list gives you a good idea.

Ok, so now how do we actually calculate the ROI?

Why would you want to calculate this….well, this can prove the ROI of your strategy & efforts, rather than not really knowing if it was successful.

We have to use some math here….stay with me, it’s actually quite simple! 😉

Take your return & divide it by your investment.

Finally, multiply this figure by 100 to get a percentage!

Here’s a basic example:
Your return is $10 dollars and your investment is $2 dollars. Then the ROI would be 500%.

This is the kind of ROI your Customers obviously want to see when you are a Consultant or a Manager, implementing a new strategy inside a business!

Put simply, it’s calculated by taking your benefits, meaning the sum of money your company has gained through your new strategy.

Then subtract from it the total amount of investment that you’ve spent to execute the strategy!

If you want to know more important & game changing strategies like this, make sure you grab a copy of my book that outlines the ‘Secrets of a 7 Figure Deal’

It is quite the ‘buzz’ word in online marketing at the moment.

So, what is it I hear you ask?!

Basically, it’s a way to communicate who you are and what it is that you do in a unique manner, and in a series of steps you create to guide potential customers as they become familiar with your product or service, then decide if they would like to buy from you.

People aren’t always ready to buy your product or service yet when they come into your funnel, or perhaps didn’t even know that there is such a product or service?! This is why a sales funnel is very important.

It also gives you a chance to turn what is most likely a ‘cold’ lead into a ‘warm lead’, and possibly a sale.

They are like any sales tool though and need testing and measuring.

I will also say here, that they give you a chance to interact with people, and show case who you are as a business or a person.

So, now I hear you ask, how do they work, and (more importantly) how do they make you money?

The truth is that there are many different types of funnels and you need to pick the one that will make the most difference to your business depending on a number of elements like:

• What kind of product or service you are selling
• What industry you are in
• What you want your initial leadmagnet to be
• What message you want to get across
• What medium you are using ie. videos/webinars, audio like podcasts, written emails/blogs or a book etc

There are also different stages of a funnel.

• Top of the funnel (TOTF)
• Middle of the funnel (MOTF)
• Bottom of the funnel (BOTF)

Examples of MOTF marketing (or second stage of the funnel) are :

• Educational videos on your site
• Books or Ebooks
• YouTube videos
• White papers or guides
• Checklists
• Tender submissions
• Follow-up phone calls
• Product demonstration videos

This is taking the Customer from cold to warm through education and building the relationship.

Examples of BOTF Marketing Tools are:

Tools we use in the BOTF include (you may have heard of some of these before also):

• Sales pages and videos
• Direct response mailers
• In-person sales visits
• Tender presentations in person
• Consult calls with a “close” at the end

The bottom of the funnel is where you invite people to take an action of some sort or buy from you.

In a few specific industries, you can sometimes get away with creating one amazingly good sales letter—and still make money. It used to be much easier, but now this is exceptionally rare, for many reasons.

It is well known that even very best sales letters in the world can still only convert at about 2% to “cold” traffic.

But to an audience that’s been “warmed up” with each stage of a funnel will generally convert far better than this.

It is about testing and measuring & tweaking your results at each stage though.

Once you have a sales funnel built out & performing, you may not need to do anymore! It should do most of the work for you, however there are components to this that need to be created first like perhaps a book or webinar  or free gift  to give in exchange for people’s opt-in details.

You also still need a great product, good customer service & a positive experience for Customers to buy from you….

…..as no funnel will overcome a terrible product or service experience!

Also, repeat purchases are what you are really after….as once you secure a Client, it is far easier to hold onto them and give them more options to buy from you (or perhaps offer other people’s products and services that make sense as an add on to your own) than have to start all over again attracting more!

We provide all of this information here for free to help people, that perhaps are a little bit like me and want to make a real difference in the world.

We love digital marketing but hope and pray with everything that we have that all the good digital marketing experts in the world, and you know who you are, respect each other’s work or directly copy articles,  but instead do their absolute best to quote,  or work with each other & support each other, which is what we do if we find something really great!

If you felt inspiration, or  enjoyed reading this information, simplified for you here, then we have done our job well.

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Ref: I wrote this back in 2020 & sourced some of the above information from inside the Clickfunnels group (after happily paying the tuition & studying with them for some time) & another incredible writer (to be listed) & added to it & changed it up from knowledge and study in the digital space! I think Russell Brunson & his team’s incredible work in this space along with their unique marketing skills that really changed the ‘funnels’ game. There are many now in this space now also, who are also excellent at it, but I do say, he was the one that made ‘funnel’s known to many who weren’t previously utilising them.

Copyright 2020 – which is when I launched this site! If you want to use it, go ahead & please quote it, rather than directly copy it, so leaders continue to share their thoughts to help others stay in business!!