Investment Return

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.