Return On Investment
How can you tell if your advertising is paying for itself? You
can use special phone numbers and other techniques. But the following
calculations should tell you a lot:
Operation Example Your Business
A. Number of calls 75
received per month
B. Number of calls needed 3
to make 1 sale
C. Number of sales made per month 25
from yellow pages calls
(line A / line B)
D. Average gross profit per sale $80
E. Total gross profit produced $2000
per month from yellow pages
(line C x line D)
F. Monthly cost of yellow pages $950
G. Net monthly gross profit from $1050
yellow pages advertising
(line E - line F)
This advertiser receives an average of $1050 per month in gross profit
over and above their $950 investment in yellow pages advertising.