For areas with a long sales cycle, it is more logical to calculate ROI for the entire period, from the time the client becomes familiar with the product until the purchase.
5. Calculate income and expenses correctly.
A common mistake is ignoring some expenses in the cost price or taking into account unnecessary costs. In this case, the income may be calculated incorrectly. Gross profit should be used for calculations.
Glossary of terms (in simple words)
Revenue, or gross profit , is the amount of revenue for a period of time minus the cost of the product.
Formula: Gross profit = revenue – cost of goods sold
Alternative formula: Gross Profit = Revenue x Margin
Gross profit includes operating expenses, taxes and other charges.
The calculation itself is not difficult if all the data is defined brazil email list correctly. In this case, you can calculate the ROI for the project as a whole in accordance with the formula:
ROI = (Return – Investment) ÷ Investment × 100
You can also determine ROI for a certain period of time. To do this, you need to calculate income and expenses for this period and, accordingly, apply the following formula :
ROI = (revenue for the period - investment for the period) ÷ investment for the period × 100
OLGA REUTOVA