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Measuring ROI: A Costly Mistake Made By Many

By Michael Zipursky

Most people are scared to make a purchase.

$5 or $10 isn’t a big deal, but as soon as you get over that magic threshold where the amount becomes something you have to think about – things change.

The human mind works in strange ways. It seems even if the ROI (return on investment) is to be greater than the cost…. people still find it hard to pay.

A recent meeting I had with a client is a good example…

We’re running an online marketing campaign for this client’s firm in a very competitive industry. So far the results achieved have been nothing short of spectacular. We’re talking about ROI in the 6 to 1 and higher levels. That is, for every $1 they invest in the campaign they’ve generated $6 back in revenue.

My recommendation to them is that it’s time to increase the campaign budget. Why? Because if you know you’re going to get back more than you’re putting in, it makes sense to start to scale the campaign and drive more revenue.

But this company finds it difficult to proceed. And they are not alone.

In many situations companies and people have a hard time putting their money into something even when they know the potential to earn back many times their investment is great.

While this kind of thinking is understandable… it’s also flawed. Why? Because…

It holds back the potential for greater success.

Another example I can share with you is our Momentum program. People from all over the world have bought it. The ones that have share their feedback with us and we’ve received a lot of praise for it.

It’s helped many people build more successful consulting businesses. They gain more confidence, have the tools and knowledge to increase their fees and work more effectively with their clients.

Nevertheless, I’m troubled when I think about how many people want to buy the Momentum program but hold off because they can’t get past the investment they need to make. What I mean is they don’t think about the potential ROI they’ll get out of it.

If they billed just one more hour from a client, or landed a single project, or began working more efficiently …

Even a single one of those would give them a great ROI for their investment.

This post isn’t about our course however… it’s about asking you to see beyond just the cost and always consider what the potential return on investment will be.

Doing this will not only help you become more successful in business and in life, it will also help you to identify, recommend and execute more opportunities for your clients.

Wishing you great success.

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