ROI Telemarketing Idea

 

ROI Telemarketing Idea

 

If I could give you a 50% return on your investment in one year, would you be satisfied?

 

How about 100%, how about 200%, how about 500%?

 

ROI, Return on Investment is an important element in life. People want to believe they are getting something for their investment in time and money.

 

People make decisions based on their perception that for their expenditure of time, money or materials that will get a fair or equitable return.

 

Perceived value – what one believes the product or service to be worth.

 

2 Corinthians 9:6 – Remember this: who ever sows sparingly will also reap sparingly and whoever sows generously will also reap generously. Galatians 6:7 – A man reaps what he sows.

 

Sow – to scatter seed for growing. To scatter with or as if with seed. To stir up. Foment.

 

Reap – to cut or gather. To harvest a crop. To gain as a result of effort.

 

I had this idea that I would go to CSI and ask them if they would find it acceptable if they gave me $1,000,000 and the end of one year I would give them $1,500,000.

 

I thought about selling them leads from the telemarketing company at $40.00 per lead (hot lead). I would tell them I would give them 25,000 leads for 1 million dollars that is over 100 leads per day, 500 per week, 2000 per month and 24000 per year, I would throw in an extra 1000 leads. That would be an average of 2.5 leads per day for 40 salespeople, 12.5 per week, 50 per month and 600 per year. How much business could their sales reps close given 600 active leads per year?

 

What is the average size of deal?

 

How much profit is generated on an average size new transaction?

 

Let’s say for example it is $5000.00 dollars.

Now let’s say a rep closed 3% of the leads he was given or 18 deals at $5000.00 a deal that is $90,000 more profit for that rep that year x 40 reps that would be $3,600,000 million.

 

You have now taken $1,000,000 and made it into $3,600,000.

 

You have gotten 720 new customers out of the 25,000 leads.

 

Each of these customers will continue to write new business and if done properly will give you one additional lead or company to call on.

 

This is a gold mine!

 

I would purchase the leads for $35.00 a lead.

 

My profit would be $.5.00 x 25,000 leads or $125,000. Not bad.

 

What I need to do is show CSI the benefit of paying $40.00 per lead or expending roughly $1,000,000 will have a direct benefit to them.

 

First they would get between 200-600 new customers per year, each of these new customers could provide them with new vendor contacts as well as additional lead references.

 

So now we have new customers, new vendors, additional leads as well as future sale opportunities which you pay absolutely nothing for.

 

For a one-time fee of $24,000 I will pay you back $90,000.

 

Sounds like a very good idea to me.

 

Let’s say they only close 2% of the leads or 12 deals at $5000.

 

Per deal, that is still $60,000 on a $24,000 investment or $2,400.00 in sales profit on a 1 million dollar investment.

 

And lastly let’s say they only close 1% of the deals or 6 out of 600 leads, at $5000 profit per deal, that is $30,000 profit on a $24,000 investment or $1,200,000 million profit with a million $ investment.

In this case we would have a 20% return on our investment, our sales people will have theoretically called on 24,000 new customers, we will have added 240 new customers to our client base which sets us up for significantly more business down the road without any investment at all.

 

 Back to the first example at 3% and now using $10,000 profit per deal, we now made $7,200,000 on a  one million dollar investment and have 720 new customers.

 

You only need to do this for one year because if you are successful, you will set yourself up for years to come. CSI would have to be an idiot now to want to invest in this deal; this would be the best investment they could make.

 

It all comes down to Return on Investment, as in life there are no guarantees, but if your salespeople are unable to close 1, 2, or 3% of the deals given them, get new sales reps.

 

Find someone who is hungry for new business.

 

If someone gave me 600 warm leads and I only closed 6 or 12 or even 18 of those, I would consider myself a failure. What would happen if you close 4 or 6 or even 10%, at 10% you would have 60 new customers at 5000 each, that is $300,000 x 40 salespeople = $12,000,000. That is $12,000,000 return in a $1,000,000 investment and 2400 new customers in one year. If the profit was $10,000 per deal, now you have made $24,000,000 on a $1,000,000 investment.

 

Remember it is a onetime investment; the customer is now yours without any further expense. Sound good? I think so! I’ll contact CSI when I get out and see if they are interested, I need to contact a telemarketing company as well.

 

The script will be very important. I will have to come up with a good script for the telemarketing company. First thing we need to do is buy a list of names from a telemarketing company, this will be handled by the telemarketing company.

 

You can expect to pay $3000-3500 for 50,000 names.

 

The 5 database criteria we are looking for is 1. Size of company by revenue, 1-5, 10-15, 15-25, 25+ million etc. 2. Number of employees 3. Length of Time Company has been in business 4. D & B # 5. Industry. Then here is a list of survey questions. 1. Type of equipment to purchase, what you are looking to purchase. 2. What is the cost of that equipment? 3. Is the equipment going to be used for a specific purpose, contract etc. 4. What is your time frame, how quickly are you looking to purchase the equipment. 5. Who is the decision maker and what is his position. 6. Have you ever leased equipment before? If you have answers to these questions then you have a hot lead. Other questions that may be asked are 7. From whom have you leased equipment from or from whom do you currently have a master lease with 8. Do you currently have any equipment under lease 9. What length of time do you want to finance the equipment 10. From which vendor do you plan to buy the equipment from, who is the contact, and phone number at that company. Industry norm as predicted by GE, Advanta, Balboa, Preferred, and Greyhound says you will close 33% of these hot leads at an average GP of $2600.

 

That seems extremely high to me, the other reason CSI might want to do this is for selfish motives of the owners. They may want to sell their company and their company would fetch a significantly higher $ if they had more customers, more sales reps, higher sales. The $1,000,000 investment could easily bolster the company’s net worth another $50,000,000. Imagine selling a leasing business that has 2000 customers with 10000 lease schedules versus one with 3000 customers and 15000 lease schedules. This is a very quick way of increasing your end user base and your sale volume so as to make it very attractive to potential investors.

 

Return on Investment! It will be important for me in whatever business I am in to demonstrate to customer the ROI on any deal they plan to do with me.

 

Thank you for this bit of inspiration Lord. Thank you Holy Spirit and Jesus for helping me walk through this process.

 

I pray that CSI buys off on this deal; I pray this through my Lord and redeemer Jesus Christ.

 

Amen