#1 highest-rated text marketing platform

The Text Marketing ROTS Calculator

Paying for text marketing to drive discovery calls is a risk. Who knows if it’ll pay off? It can feel like buying a lottery ticket. But it doesn’t have to. Plan for text message spending success by estimating a few key metrics. Don’t gamble with your business. Know what kind of ROTS you can expect.

ROTS Text Marketing Calculator

“Using Launch Control’s SMS marketing, in one week we closed a deal for $4.2M - it was a quick text, follow-up text, then we were able to get a response and set up a call.”

- Blake Lea

Is Text Marketing Worth It?

When you break down the math and add a few variables specific to your business, you can quickly understand if this is a game you want to play or not.

Projected Monthly Text Messages
How many text messages do you plan on sending per month?
Discovery Call Conversion Rate
How often does a text message convert into a discovery call?
%
Average Deal Size
On average, how valuable is a single customer?
$
Discovery Call to Customer Close Rate
What percentage of your discovery calls turn into customers?
%
Monthly Results

Positive Responses
40

Inbox Conversations
12

Discover Calls
4

Cost-Per-Call
$124.25

Expected Revenue
$9,503.00

Return on Text Spend
1912%

What is ROTS? — ROTS meaning

Return on text spend or ROTS is the amount of revenue a company generates for every dollar spent on texting.

When a business tests a new distribution source for a campaign, it may compare the ROTS at different stages of the campaign with other distribution sources to gauge their performance and determine which should get renewed.

How to calculate ROTS? — ROTS calculation formula

The ROTS formula is:

ROTS = (Revenue from texting/ Cost of texting software) * 100

That means that if you spent $497 on Launch Control in one month and your revenue for that month is $5,000, your ROTS is ($5,000/$497) * 100 = 1,006% return on texting.

But if you made $600 in revenue in the same month, your ROTS is ($600/$497) * 100 = 120%.

120% may look acceptable at face value, but don’t be fooled by anyone throwing such ROTS numbers. Anything less than or close to 100% is a loss when evaluating ROTS. The ROTS calculator will help you make sure you don’t interpret your ROTS results wrongly or confuse them with your ROI.

ROTS is NOT ROI!

While ROI gives a more accurate evaluation of your entire real estate business performance, ROTS is restricted to the performance of your text marketing spend.

What is a good ROTS?

Using our example above, is the ROTS of 300% a good return? It depends.

If you have to pay for other expenses such as virtual assistant costs and legal fees or Stripe fees (if you’re receiving money via Stripe) from the revenue, your margin reduces further.

Although different businesses have different objectives for their texting and marketing campaigns, most focus on improving revenue and, ultimately, profit. That means you need to establish some margin of safety if you want to protect your net profit margin. Therefore, a good ROTS is accompanied by profitability after you have accounted for less obvious advertising costs, e.g., vendor fees, commissions, transaction fees, and other business overhead costs.

A ROTS less than 400% means you need to reevaluate your marketing strategy. If it’s within the 400–799% range, you can still be profitable after removing your business operational cost. Just make sure to keep tracking the metric with the ROTS calculator and optimize for opportunities.

Pricing

Simple, transparent pricing

Pricing that supports your business as it grows

🚀 Lite

Just getting started with building a pipeline.

$497 / month

What’s included

Popular

🚀🚀 Core

Scaling up and running a small team.

$797 / month

All features of Lite

🚀🚀🚀 Pro

A full-scale operation.

$1497 / month

All features of Core

🚀🚀🚀🚀 Enterprise

Let’s find a custom plan that meets your team's needs.

Message Us

All features of Pro

Frequently Asked Questions

What does ROTS mean?

ROTS means return on text spend. It is a metric that evaluates the performance of the cost of texting.

How to calculate ROTS?

Perform the following steps to calculate the return on ad spend:

  • Determine the revenue from your texting source
  • Divide the revenue by the cost of the texting
  • Multiply the result by 100 to get the percentage ROTS

If your ROTS is less than 100%, your texting is at a loss.

How to calculate break-even ROTS?

To break even on your text spend, your ROTS has to be 100%. Therefore, if you want to calculate breakeven revenue for your ROTS, multiply your cost of texting by 100%.

What is a good ROTS?

What is a good ROTS depends on how you define ROTS and your primary objective for texting or marketing. A ROTS is good if it covers all associated texting costs. If your calculated ROTS is 100%, you’ve broken even. If it’s over 400%, you’re probably in a good spot to account for less obvious costs such as vendor fees and commissions. But if ROTS is 800% and above, you definitely have a great ROTS to cover your business operational costs.

It’s time to start texting today!

© 2023 Launch Control, LLC.

Get Started Now!

Let's Get Started

Let's Get Started

Let's Get Started

Let's Get Started

By submitting this form and signing up for texts, you consent to receive marketing text messages from Launch Control at the number provided. Consent is not a condition of purchase. Msg & data rates may apply. Unsubscribe at any time by replying STOP. Terms & Conditions | Privacy Policy

Let's Get Started

By submitting this form and signing up for texts, you consent to receive marketing text messages from Launch Control at the number provided. Consent is not a condition of purchase. Msg & data rates may apply. Unsubscribe at any time by replying STOP. Terms & Conditions | Privacy Policy

Contact us

Leave your contact details and we’ll text you back as soon as possible.

By submitting this form and signing up for texts, you consent to receive marketing text messages from Launch Control at the number provided. Consent is not a condition of purchase. Msg & data rates may apply. Unsubscribe at any time by replying STOP. Terms & Conditions | Privacy Policy

Contact us

We are excited to connect and understand your marketing needs. Complete the form below, and an expert from our team will be in touch in 1 business day.

By submitting this form and signing up for texts, you consent to receive marketing text messages from Launch Control at the number provided. Consent is not a condition of purchase. Msg & data rates may apply. Unsubscribe at any time by replying STOP.
Terms & Conditions | Privacy Policy

Let’s get started

By submitting, I agree to receive text & email communications from Launch Control

Contact Us

Leave your contact details and we’ll text you back as soon as possible.

By clicking Send, I agree to receive text & email communications from Launch Control