Networking ROI Calculator for Sales and Business Owners

The results of networking takes place over time. You should measure progress over a time segment based on your sales cycle. For example, if it takes two months to convert a network contact into a customer, than you should measure your ROI over a two month time period.

In addition, networking is only a component of how you build your sales pipeline and is used in conjunction with other sales and marketing tactics. Networking should be embedded into your process. This tool will help you calculate the extent that networking adds value in the sales process.

  • Answer this based on the time period you are measuring or a specific event where you want to gauge a return. This number should include anyone that you had a meaningful conversation with, are in your target market or have access to people in your target market and have exchanged their contact information with you.
  • This should include cost of event(s)/networking activities during the time period you are measuring plus parking, mileage, time (estimate cost of your time), meals etc.
  • This is the average percentage of leads expected to make purchases based on your average sales cycle from the time you meet someone until they make a purchase. When networking, you are building relationships and a networking lead is a “warmer” lead because someone has the chance to get to know you. To approximate this number, consider for every 10 people that you form a relationship with via networking, how many of these contacts do you expect will buy something from you?
  • How much do you make "on average" for a sale?
  • This is an estimate of the number of buyers you can expect through networking.
  • This is how much it costs you to acquire a new buyer/customer through networking.
  • This number willl help you to understand if you are using your time on networking activities wisely.
  • Use this number to evaluate your approximate return on networking investment. You can assess if a networking activities or series of networking activities over time are resulting in a positive outcome.