| Gross Margin per Sale | $500 | $1,000 | $2,500 | $5,000 | $10,000 |
| Follow-Up per Prospect | $5 | $5 | $8 | $10 | $10 |
| Follow-Up Cost per 100 Prospects | $500 | $500 | $800 | $1,000 | $1,000 |
| Contribution at 1% Conversion | $500 | $1,000 | $2,500 | $5,000 | $10,000 |
| Contribution at 5% Conversion | $2,500 | $5,000 | $12,500 | $25,000 | $50,000 |
| Contribution at 10% Conversion | $5,000 | $10,000 | $25,000 | $50,000 | $100,000 |
Example
- Gross margin per closed sale is $2,500.
- We spend $500 to stay in touch with 100 at-risk prospects
- If we convert 5 out of the 100 through our efforts...
- Contribution is 5 sales x $2,500 = $12,500
The Power
- We invest well - only on serious prospects
- We outplay competitors, and fight the other vultures
- Potential conversion rate is much higher than 5%
- Can test follow-up programs for best ROI
The Key Points:
Excitement is highest right after the sales process.
Heads south from that point on, unless we counter:
- Price Concern: we must counter with reminders of value.
- Competitive Pressure: we must counter with value and communicated "flexibility."
- Procrastination: we must counter with motivation.
- Long Buy Cycle: we must stay in touch to maintain share of mind.