January is my time to evaluate last year’s marketing’s ROI.

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Apple stock delivered a 38% return in the past year. Not bad, right?

But here’s the real question: Can your marketing dollars beat that? 

If your marketing generates a net profit return greater than 38%, you’re on the right track.

Here’s the math:

Imagine your company buys Apple stock using it’s (net) profits—it’s a straightforward investment.

Marketing works the same way.

If you invest $10,000 in a marketing campaign, you expect it to generate a return.

If it generates $15,000 in net profit, your ROI is 50%, outperforming Apple.

Better yet, when you factor in the lifetime value of a customer, the returns often compound.

Sweet.

Important note about the math here:

• The words “net profit” are in bold above because I want to be sure you understand that you’re investing your net profit into your marketing.
  • If you didn’t invest it in your marketing, you could use it to take a a higher salary. Hire staff. Or upgrade your office.
  • Accidentally using gross revenue or gross profit in your calculation wouldn’t be an accurate comparison.

So, take a moment to review your marketing.

If it’s beating the stock market, double down.

If it’s not, reconsider your plan.

Stocks take a whole lot less hand holding than a marketing campaign.