You want to know the ROI of your investment when you purchase something for your business. Clients also want to know their return. If you don’t consider and communicate the potential returns, it will make their decision difficult. You must also present the ROI in terms that are meaningful to the decision-maker.
It is not enough to have a great tips book or some other small form of brilliance. Without value, it doesn’t matter. There are many ways to measure value. These are some of the most common.
What amount of money can your bite-sized brilliance products generate as a marketing tool or as an income stream directly or indirectly? Some decision-makers measure their return on profits only, gross revenue, or an increase in market share, or another industry calculation. Asking them is the only way to find out what they are looking for and how they calculated it. Some buyers need a multiple of the amount they invested. For example, if they expect to receive less than five or ten times their investment, they may not be inclined to invest their resources in your offer. They may need it to be completed within a specified timeframe to allow them to move forward.
One company may measure ROI in a specific currency. Another company will be happy with a percentage increase in their practice. Consultants, practitioners, and coaches seek a full-fledged practice according to their criteria that generate less money than a large company product launch or non-profit membership drive. Each environment defines success differently, and each person must measure the return on their investment.
A company’s products can help them to be known in their local community. They can also help to do good work by supporting the creation and distribution of information that is useful to those they wish to help. It can be difficult to measure the return on investment in these situations. This return is usually long-term and not immediately. However, the culture of the organization or company is willing to invest in your data to support their overall mission.
Your products could be mathematically calculated or placed in the “feel good” realm by your buyer to cause an initial loss that leads to revenue or engagement. It might not be a bonus that prompts sales but a way to introduce your products. You could give it as a gift to test drive anything, from a vehicle to memberships to products or services. With the expectation that sales will occur sooner or later, the decision-maker has included a certain amount as a cost to do business.
Consider the many ways that your potential buyer will reap the benefits of your products and services. This is regardless of how you present your brilliance. Your buyers will feel more comfortable if you can capture and cite the results of previous clients and others in your industry. However, these results are only examples and may not be applicable to your situation.