A key performance metric when evaluating a marketing campaign is return on investment (ROI). There are many misconceptions about how this metric is calculated. Some might think that if you spend $25,000 on a campaign and it brings in $50,000 in revenue, that they have gotten a 100 percent ROI.
However, this method doesn’t account for things like the cost of goods, your business’ expenses and other overhead factors. You want to calculate your ROI based on gross profit on the product/service you are selling, not simply revenue. Continue Reading