Find Out Your Website’s Return on Investment

Directions

Establish two comparable periods over which to compare your results (before and after you introduce your new website.) These periods should be long enough to provide you with a good sample of data, but not so long as to delay the receipt of the information beyond when it is useful. If your business has seasonality, consider using the same period from a past year.

Inputs

Line 1. Gross profit margin is the percentage of your total revenues that is profit after your cost of goods sold (COGS) is deducted but before fixed expenses (overhead) are subtracted.
Line 2. This is the average revenue from each of your sales or contracts. If you get a lot of repeat customers or recurring revenue, you might consider using average customer lifetime value for this field.
Line 3. This is the percentage of your leads that become customers.
Line 4. This is the percentage of visitors to your page that become leads, however you define that, in the ‘before’ period.
Line 5. This is the percentage of visitors to your page that become leads, in the ‘after’ period. Hopefully, your new website will increase this percentage.
Line 6. This is the number of months over which the tool will calculate your returns. Enter a number that represents the likely life of the website. (24 months is a serviceable default value.)
Line 7. This is how much you spent, or anticipate spending, on a website.

Outputs

Line 8. Additional gross revenue: This is the amount of additional sales that your video has created, or is likely to create.
Line 9. This is the Return on Investment that your video has yielded, or is likely to yield.