Hi I am John Daus with DigiFutures an Internet Marketing agency in Virginia. We would like to continue the discussion about measuring internet marketing tactics and calculating an ROI for your online marketing campaigns. Last week we talked about how to track the traffic and measure conversions on your website so the next step is to calculate how many of those leads turn into sales. A simple formula for calculating ROI is to multiple the leads times the close ratio and sales value which will give you the revenue generated from your web site. Take this number and multiple by your gross profit margin then divide by your investment in internet marketing.
The following slide shows you the basic equation. It is posted on the Digifutures Blog: www.digifutures.net/Blog
That’s our internet marketing tip of week from John Daus at DigiFutures.
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