Wednesday, June 2, 2010

ROE--Return On Effort

I was working with a rep who was planning a "promo page." The page involved selling a large number of advertisers and was based on readers "voting" by sending in answers to trivia questions. In many ways this was a creative idea and the reader component provided proof that people were looking at the ad. The downside is that the the entire project would generate just over a $1,000 in revenue. In my opinion the minimal commission the rep would earn on the sales was not worth the effort to sell and set up the page. Generally promos are only worth the effort if they run for multiple weeks with minimal changes. Always think about the "ROE" of any activity. This works like "ROI" except that the investment is measured in time and energy instead of dollars. To be productive you need to maximize the amount you earn for every hour you put into building your territory.

Keep Smiling, Keep Selling!

Thanks Jim Busch

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