Return on Investment (ROI)

Show Me The Money: ROI of Business Coaching

Return of Investment (ROI) of coaching is the monetary benefit obtained by a client over a specified time period in return for the monetary investment in coaching. Looking at it another way, ROI is the extent to which the benefits (output) of coaching exceed the cost (input).
Below you will find the ROI of business coaching for some of Redpoint's clients.

Senior Mortgage Broker: ROI of Redpoint's Business Coaching = 714 %
In other words, this client received her investment in business coaching 7.14 times back!
Details of calculation:

ROI = Increase in commission earned over a time period due to coaching ($30,000k)/Cost of coaching over time period ($4,200) = 7.14
Where
Time period: 12 months
Increase in commission earned due to coaching: $30,000. Note this number has been corrected for other external factors such as a favourable market due to the interest rate environment.
Cost of coaching: $4,200 ($250/month coaching fees, $100/month indirect costs: forgone income during coaching time.

Marketing Director and Co-owner of Internet Dating Venture ROI of Our Business Coaching=660 %
In other words, the client received her investment in business coaching 6.6 times back!
Details of calculation:

ROI = Increase in disposable income over time period due to coaching ($8,000)/Cost of coaching over time period ($1,200) = 6.6
Where
Time period: 3 months
Increase in salary due to coaching: $8,000. Note this number has been corrected for other external factors. Cost of coaching: $1,200 ($300/month coaching fees, $100/month indirect costs (forgone income during coaching time)

Note that these numbers are in line with other quantitative studies (see eg. Manchester Inc., 2001) which found a ROI of executive coaching of around 600%. For more information about these calculations contact Urs at: urs@redpointcoaching.com.

Show Me The Money: ROI of Executive Coaching

Coming Soon!

Show Me the Money: ROI of Financial Consulting

Coming Soon!