A Formula For Success

Now I'm no math wiz... So I found this simple formula that has helped me to predict whether a trade show will generate a hefty return on investment.  Let me know if you find it useful!

Multiply the number of hours the show will be open by the number of staff working your booth.  For example:  If the show will be open for three 8 hour days (3 x 8 = 24) and you're sending two salespeople, your total is 48.

Then, multiply that number (in this case, 48)  by the number of qualified prospects you expect your salespeople to find per hour.  Let's say that's six.  Your answer here 288 - will be the total number of qualified prospects you can expect to reach at the show.

The next step is to multiply that number (in this case, 288) by your average closing percentage to determine the total number of new customers you can expect to attract at the show.  If your closing percentage is 10%, your answer here is 28.

Then, multiply that number (in this case, 28) by your average annual sales per customer to project the total annual revenues you'll receive from these new customers.  For example, if your average annual sales per customer is $5,000, you would multiply this by 28 and get $140,000, your one-year potential return.

Finally, multiply that number (in this case $140,000) by the average length of time a customer stays with your company.  Let's say it's 10 years.  You now have your expected return-on-investment from the trade show - a hefty $1.4 million!