family or community"

Part of Hawaiian culture, ʻ

Families are essential for people to survive, thrive, and support each other. Businesses also can have families. Ohana means family in the Hawaiian language. We believe that businesses have their own “family” comprising of other businesses in an ecosystem that is essential for survival and growth. Ohana has found the right solution to solve the below business problems:

The Small Business Problem: SMBs don't have the same buying and selling opportunities as larger companies. The SMB survival rate is only 50% after 5 years of existence. Most SMBs lack a viable ecosystem to sustain and grow.

The IT Manufacturer Problem: Large IT Enterprises like Cisco, HP, Microsoft face erosion of their SMB businesses primarily due to reliance on resellers to stay in touch with this segment.

The IT Reseller Problem: Selling and catering to small businesses is not scaleable and lack a strong ROI with today's solutions. Losing customers is a big challenge.

The Ohana solution will address the needs of all three of the above segments and represent a new way to create a B2B ecosystem for the IT Resellers, Manufacturers and millions of SMBs.

The Small Business Problem: SMBs don't have the same buying and selling opportunities as larger companies. The SMB survival rate is only 50% after 5 years of existence. Most SMBs lack a viable ecosystem to sustain and grow.

The IT Manufacturer Problem: Large IT Enterprises like Cisco, HP, Microsoft face erosion of their SMB businesses primarily due to reliance on resellers to stay in touch with this segment.

The IT Reseller Problem: Selling and catering to small businesses is not scaleable and lack a strong ROI with today's solutions. Losing customers is a big challenge.

The Ohana solution will address the needs of all three of the above segments and represent a new way to create a B2B ecosystem for the IT Resellers, Manufacturers and millions of SMBs.

SMBs with 25 employees typically spend $70-100K annually to market, brand, and generate sales. Ohana will offer SMBs as little as $20 per month to connect to thousands of buyers and sellers in a direct, easy to use web tool with a personal touch. IT Resellers can effectively reach tens of thousands of SMBs in a new, powerful, and resource friendly way that can save many thousands of dollars to generate sales leads to grow their revenue. See how much businesses pay to generate sales leads today:

When planning a B2B lead generation program, you need to deliver leads to your sales team at an affordable price. A neat way to determine in advance how much you can spend on a lead is to calculate the Allowable Cost per Lead for your campaign. This number can then be used as a benchmark for evaluating campaign investments, and deciding which ones are likely to work. If a campaign is looking like it’s not affordable, then you’ll want to make some tweaks, like find a stronger offer, or narrow your targeting.

Begin by calculating your cost per inquiry. Assemble the total direct campaign costs, including all fixed and variable costs that can be directly attributed to the campaign. Include creative and pre-production work, the cost of developing and producing content, and the normal variable costs of campaign development and execution. Divide this amount by the number of expected campaign responses, and voila! There’s your cost per inquiry.

Then, estimate the costs associated with qualifying a lead. Don’t try to determine this number on a per campaign basis—it’s too hard. Instead, calculate an average qualification cost for inquiries over a set period, such as a year. Gather up all your inquiry-handling costs, including the direct headcount involved in inquiry capture, fulfillment, qualification, and nurturing. If your back-end processes are outsourced, gathering the data is as simple as adding up the bills. After you have a number for the year, divide it by the number of inquiries handled in the year. This number will serve as your average cost to qualify an inquiry.

Finally, go talk to your counterparts in finance and sales, to gather several data points. You need the average order size: namely, the total revenue divided by the total number of orders. (If this number swings wildly, do the calculation by product category.) You need the margin (or its opposite, the cost of goods sold) and the direct sales expense per order, calculated by the total sales expense divided by the total number of orders.

Let’s look at an example of how this works. The chart works through some hypothetical numbers to arrive at a cost of lead closed and an allowable cost per lead, and compares the two. Your goal is for the cost of a closed lead to come out lower than the allowable—obviously. If it’s higher, you lose money on the campaign.

To get to Allowable Cost per Lead, it’s not actually necessary to know how many inquiries will be generated, qualified, and converted. But you do need to know the cost per inquiry, the cost to qualify an inquiry, the qualification and conversion rates, the net margin per order, and the direct sales expense per order.

**Comparing your cost per closed lead to your Allowable Cost per Lead: A hypothetical example**

Cost per inquiry (campaign cost / # responses) $100

Average cost to qualify an inquiry (lead management costs / inquiries per year) $50

Total cost per inquiry qualified (cost per inquiry + cost to qualify) $150

Lead qualification rate 25%

Cost of qualified lead (cost per lead / qualification rate) $600

Lead conversion rate 30%

Cost of a closed lead (cost of qualified lead / conversion rate)** $2,000**

Average order size (annual revenue / # orders) $10,000

Net margin per order (revenue per order x margin, 60%) $6,000

Allowable cost per lead (net margin per order – direct sales expense,$3,500)**$2,500**

In this hypothetical example, say the campaign spent $15,000 and generated 150 inquiries. Whatever the cost and the responses, the important number is the cost per inquiry. Here, we have hypothesized it as $100. Separately, the average cost to qualify an inquiry for the year was calculated at $50. We divide the qualification rate (25 percent) into the total cost per inquiry qualified ($150) to calculate the cost of a qualified lead. Then, we divide that by the conversion rate (30 percent) to get the cost of a closed lead ($2,000).

This number is then compared with the allowable cost per closed lead ($2,500), which is a simple calculation of the net margin per order minus the cost of sales (hypothetically set here as $3,500). In this example, the campaign looks promising, because the expected cost per converted lead is $500 less than the Allowable Cost per Lead.

If you put this information in a spreadsheet and play with it, you can quickly see how much leverage there is on the back-end, meaning after the inquiry has come in and you are working it through qualification and nurturing. A few efficiencies on qualification rate and conversion rate work wonders on campaign ROI.

Begin by calculating your cost per inquiry. Assemble the total direct campaign costs, including all fixed and variable costs that can be directly attributed to the campaign. Include creative and pre-production work, the cost of developing and producing content, and the normal variable costs of campaign development and execution. Divide this amount by the number of expected campaign responses, and voila! There’s your cost per inquiry.

Then, estimate the costs associated with qualifying a lead. Don’t try to determine this number on a per campaign basis—it’s too hard. Instead, calculate an average qualification cost for inquiries over a set period, such as a year. Gather up all your inquiry-handling costs, including the direct headcount involved in inquiry capture, fulfillment, qualification, and nurturing. If your back-end processes are outsourced, gathering the data is as simple as adding up the bills. After you have a number for the year, divide it by the number of inquiries handled in the year. This number will serve as your average cost to qualify an inquiry.

Finally, go talk to your counterparts in finance and sales, to gather several data points. You need the average order size: namely, the total revenue divided by the total number of orders. (If this number swings wildly, do the calculation by product category.) You need the margin (or its opposite, the cost of goods sold) and the direct sales expense per order, calculated by the total sales expense divided by the total number of orders.

Let’s look at an example of how this works. The chart works through some hypothetical numbers to arrive at a cost of lead closed and an allowable cost per lead, and compares the two. Your goal is for the cost of a closed lead to come out lower than the allowable—obviously. If it’s higher, you lose money on the campaign.

To get to Allowable Cost per Lead, it’s not actually necessary to know how many inquiries will be generated, qualified, and converted. But you do need to know the cost per inquiry, the cost to qualify an inquiry, the qualification and conversion rates, the net margin per order, and the direct sales expense per order.

Cost per inquiry (campaign cost / # responses) $100

Average cost to qualify an inquiry (lead management costs / inquiries per year) $50

Total cost per inquiry qualified (cost per inquiry + cost to qualify) $150

Lead qualification rate 25%

Cost of qualified lead (cost per lead / qualification rate) $600

Lead conversion rate 30%

Cost of a closed lead (cost of qualified lead / conversion rate)

Average order size (annual revenue / # orders) $10,000

Net margin per order (revenue per order x margin, 60%) $6,000

Allowable cost per lead (net margin per order – direct sales expense,$3,500)

In this hypothetical example, say the campaign spent $15,000 and generated 150 inquiries. Whatever the cost and the responses, the important number is the cost per inquiry. Here, we have hypothesized it as $100. Separately, the average cost to qualify an inquiry for the year was calculated at $50. We divide the qualification rate (25 percent) into the total cost per inquiry qualified ($150) to calculate the cost of a qualified lead. Then, we divide that by the conversion rate (30 percent) to get the cost of a closed lead ($2,000).

This number is then compared with the allowable cost per closed lead ($2,500), which is a simple calculation of the net margin per order minus the cost of sales (hypothetically set here as $3,500). In this example, the campaign looks promising, because the expected cost per converted lead is $500 less than the Allowable Cost per Lead.

If you put this information in a spreadsheet and play with it, you can quickly see how much leverage there is on the back-end, meaning after the inquiry has come in and you are working it through qualification and nurturing. A few efficiencies on qualification rate and conversion rate work wonders on campaign ROI.

https://biznology.com/2015/10/much-pay-sales-lead/

The 2014 Ohana Market Trial consisted of 660 SMBs on the Ohana connected community platform. Yelp's API provided a database of 4 million businesses to add to our site.. Ohana partnered with the Chamber of Commerce of Campbell, CA to conduct the pilot.

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