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Download print version of “Truth #5: Dental Website Marketing ROI (Return-on-Investment) – Who Else Wants More Profits Now with Higher Dental Marketing Returns?
Truth #5: Dental Website Marketing ROI (Return-on-Investment)
Who Else Wants More Profits Now with Higher Dental Marketing Returns?
9 Truths of Dental Marketing – #5
For the complete online video series at no-charge go to: www.InternetDentalAlliance.com/9Truths.htm
Welcome! This is Jim Du Molin, Editor of The Wealthy Dentist Newsletter. I’m here today to give you a brief introduction to segment # 5 of our 9 Truths Program.
In this segment we are going to be looking at how to calculate your ROI or Return on Investment on your Internet Dental Marketing.
Over the years, I’ve found that some dental providers have a problem with making money. Suzanne and I have sometimes been judged harshly because we feel our clients deserve to make a profit. Profit does not mean a win-lose with you winning and the patient losing. On the contrary profit is the natural result of doing what’s right for your patients. A win-win result.
Return on Investment. OK. All marketing strategies should make you a good Return on Investment. So lets look at it.
This is a spreadsheet program, and I’ve got it illustrated here, that starts with a sedation patient. The average value of a sedation patient is about $2,187. We’ve analyzed this one to death, so we know that pretty well. Your marginal profit, or the percentage of money that goes to you after the cost of dentistry, is 72%. Now were assuming that you’re breaking even, and this is an additional new patient. So, after the cost of lab and dental supplies, 72% goes to you. That’s a marginal profit of $1,575.
It costs you about $160 a month to maintain and position your website. I’m going to be very honest with you. The cost of web marketing is not in building the website. You’ll see that in a minute. IDA is very reasonable. Its not in building the website and setting it up. Its in positioning it with the search engines, and maintaining it with the latest information about you, your team and what you want your patients to know. That’s what costs the money. And that’s where we make our profit, to be very honest with you. Not in setting up the website.
So it costs about $160 and what’s left is your net profit from a patient is $1,415.
Now if its a cosmetic patient, it averages about $5,500. Pretty straightforward. Your marginal profit is still 72%, but your dollars in are $3,996. We take away the monthly fee to position it. $160. And you end up with a profit of $3,836.
Lets do this once more with implants. An Implant patient is about $8,000 for a good implant case. Again 72%. It comes up to $5,700, minus $160 and you make $5,600 from your website. That’s what were targeting.
I hope you enjoyed this introduction to how to calculate your Dental ROI Return on Investment from your dental website marketing.
I just want to remind you that gross fees and lab fees will vary depending on your local demographics and clinical choices but, as you can see from the Marginal Profit numbers, it doesn’t take a lot of new patients to make your Internet dental marketing campaign successful.
A successful dental marketing strategy is defined as one that generates more net income than it costs to build and maintain. Remember to keep asking yourself: if you hand someone $1 and they give you back $3 – how long do you want to keep playing the game?
In segment # 6, our next of the 9 Truths series, we will look at how potential dental patients actually search on the Internet. This is an advanced strategy session that will explain little known strategies on how to reach potential patients when they don’t use a local geographic indicator like Chicago Cosmetic Dentist in their search parameters. This information can literally double your Internet dental marketing results.
For the complete online series at no-charge go to: www.InternetDentalAlliance.com/9Truths.htm
