10X ROI – And the client is STILL not happy?

Pinch me! Wake me when this nightmare is over! I just simply DON’T GET IT!

True Story … We have had a client (let’s just call them “Mr. I'm Never Happy”) who has been live on Catalogs.com for over three consecutive years.

“Mr. I'm Never Happy” called up and said

“We need to cancel our relationship with Catalogs.com because we are not achieving a high enough ROI (Return on Investment).

We were very surprised and asked “Really, what are you getting.” “Mr. I'm Never Happy” said,

“Well, we are averaging only a 10x ROI.”

The carpet cleaning crew that night had to pick me up off the floor. For anyone not clearly understanding how to calculate an ROI, it’s simple:

“Mr. I'm Never Happy” spent $1,000.
He received $10,000 (ten thousand) in sales revenue.
“Mr. I'm Never Happy” is still NOT happy.
He wanted to receive and I quote “30x ROI” or $30,000 in sales, having only spent $1,000.

Are they crazy!

Let me “vent” and tell you what else “Mr. I'm Never Happy” received, in addition to 10 X ROI:

1. Increased brand recognition and exposure.
2. Tens of thousands of targeted and qualified visitors directly to his website.
3. He acquired loyal customers that more than likely will have repeat purchases.
4. He benefited from Catalgos.com Search Engine Optimization (SEO)

I apologize for using my blog to vent, but in today’s economic environment where so many companies are struggling to survive, it sickens (and angers) me when corporations get greedy. Ten times ROI (10x) is an extremely respectable rate of return. Simply take a look at your own bank accounts and stock portfolios this year. Have you made $10,000 by ONLY investing $1,000? Wouldn't a person with REALISTIC expectations be jumping for joy?

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I can understand your frustration with clients. It's inevitable. You have to expect that there will be some that it's better to just not do business with. On the other hand, I wouldn't personally call that a 10x ROI, unless the product / service they're selling has no cost. If the margin on the sale is 30%, then they're getting a 300% ROI or 3X, as the actual profit on the sales generated by your advertising is $3000. I'd say that's still a fair return on an advertising investment.

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