Return on Investment
Using a simple formula it is easy to calculate your Return on Invest by being involved with our group.
Step 1: Work out how much a single referral is worth to your business.
What is your average sale worth? For example if you were a Handyman and the average job was about $750, this would be the figure to use.
Step 2: Work out the costs of being in the group.
This amount would be 48 breakfasts ($960) plus annual membership fees($700) which works out to be around $1660 a year (an extra $300 in the first year)
Step 3: Work out how much your commitment of 1.5 Hours a week for 48 weeks is worth.
Say you charge yourself out at $60 an hour, this amount would be 1.5 x 48 x 60 = $4320
Lastly take your annual outlay and divide it by your average sale
Step 2 + Step 3 / Step 1
$1660 + $4320 / $750 = 7.97
This means that you would need to pick up 8 referrals a year to make your investment in time and effort worthwhile.
Not very hard, is it? As you can see this is a great way to increase the amount of business you generate.
Consider this: It has been argued that you would normally not be doing business between 7am and 8.30am .. so if you are developing you business at this hour every week you could set Step 3 at zero dollars and be seeing a return on investment after just 3 referrals!
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