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How To Fund an Incentive Program
Hypothetical Funding Analysis for an Incentive Marketing Program for A large Dealer Sales Network
Total Program Cost of $1,888,000 is 38% of the incremental profits.
Return on Investment (ROI)
|Incremental Gross Profit (50%)||$4,950,000|
|Travel Program Cost (600 @ US $2,887.50)||$1,732,000|
|Travel Promotion Cost||$156,000|
|R.O.I. Gross profits divided by total costs||262%|
Editors Notes: While the above configuration may not match your companies own needs, use this formula we have created and just plug in your own numbers. Hint: be realistic and objective as possible. You’ll be amazed at the results.
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