Net revenue includes the cost of goods
This means that for every dollar I invest , I receive dollars in return . This is an extreme example, but it shows you how powerful the value of using calculations can be . The ROI of an email marketing campaign is calculated based on the revenue earned and the investment costs incurred by the campaign . However, there is controversy as to whether the revenue generated should be total revenue gross revenue or total revenue minus direct cost of goods net revenue or gross profit . There are subtle differences between the two . Many companies try to control gross margins at , but this varies from company to company. To calculate your email marketing ROI , use the following formula.Email Marketing Formula Above, I mentioned why net revenue vs. gross 10 best gps tracker services in Bangladesh revenue is important. Many marketing departments will consider the total revenue generated by the campaign . In my opinion, this overstates the ROI numbers and is misleading . I believe all ROI should be based on net income . There are subtle differences between the two . If you use gross revenue, you may see a high ROI number , but ultimately , this becomes a vanity metric . You need your finance department to figure out net income and then use the net income report to actually represent the actual numbers on your ROI . sold , while gross revenue is the total revenue generated from sales .
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This is a key nuance to understand . If your marketing campaign generates a ROI based on gross revenue , you 're showing companies that your marketing campaign is generating a.return for every dollar spent . So , if your marketing campaign generates sales of, and your campaign costs, your ROI is . However, if your direct cost to generate that revenue is , your ROI will be severely impacted. If you generate revenue of , but the direct costs associated with that revenue are, the formula suddenly looks very different. These direct costs are the cost of manufacturing the product , not indirect costs.
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