What is ROI? (Return on Investment)

Your ROI is a measure of the return you get from your online advertising campaign. By working out what your ROI is will help you to develop an effective online marketing campaign. iGHOST will help you improve your ROI quickly due to the low cost you will be paying for each new visitor to your site.

Your ROI is calculated from the total number of visitors that view your web site, the actual monthly cost of your online advertising, how many sales you make from those visitors and the average profit made from each sale.

All businesses vary and the number of required new sales you require to make your online presence successful depends on your type of business.

The following represent both ends of the scale and it is highly likely your business falls somewhere between the two.


Example 1. The small widget company.

A small widget company needs to receive lots of visitors and sell large quantities to make there campaign pay.

If you sell widgets for £5.00 that return a profit of £1 each and you spend spend £300 per month on advertising then you need to sell a widget to 300 customers to break even. If your conversion rate is 1% then your web site will need to receive at least 3,000 visitors per month to pay for itself.


Example 2. The large service company.

The large service company supply a very specialised service that returns a high profit value per sale.

They sell a service that costs £500,000 per sale and returns £100,000 profit per sale.

Because they supply a specialised service they will not receive the same number of site visitors as for example a web site selling TV's but they do not need to.

If they receive 240 visitors a year to their site as a result of an online marketing campaign that costs them £1000 per month and they sell their service to two new clients then for their investment of £12,000 they will increase there turnover by £1 million, and make them £188,000 profit.


AS you can see from the above examples, the number of visitors your site receives can vary significantly depending on the type of business you operate in. Despite this both of these businesses would benefit from an iGHOST site because by catapulting them to the 1st page of the major search engines will increase the number of visitors they get to their site.

Because iGHOST targets their specific search terms then it is highly likely that the visitors are looking for their product or service which will result in a higher conversion rate than less targeted online campaigns.

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