The Early Learning Ventures (ELV) Alliance model is a non-regulatory intervention designed to improve the efficiency of state child care markets. Strong nonprofit organizations are selected to start Alliances, and in turn they create networks of center-based and family child care providers, or Affiliates. The Alliances share business services and take advantage of bulk purchasing agreements available through the ELV platform. For a fee, providers in the Alliance can receive one of three levels of service ranging from access to a shared services web platform for bulk purchasing (Tier I) to a comprehensive set of enrollment, billing, and other business services (Tier III). The model is currently being taken to scale in Colorado where, like most states, market-based child care providers are particularly sensitive to the increased costs associated with providing higher quality care, and do not benefit from the operational efficiencies that would result from achieving an economy of scale. Accordingly, the ELV Alliance model attempts to create greater operational efficiencies among smaller providers to allow them to provide higher quality care at lower cost. These efficiencies help the model achieve its ultimate goal of promoting higher quality, market-based child care that promotes child well-being and school readiness. The fundamental assumption of the ELV Alliance model is that the operational efficiencies and economies of scale created by an Alliance network allow child care providers to offer higher quality care at a lower cost. The first step in testing this assumption is to analyze the extent to which the money invested in the model produces a return that is greater than the original investment. To do this, ELV contracted with Development Research Partners to conduct a return on investment (ROI) study. The research team analyzed the value of the efficiencies created by participation in an Alliance network, and the returns gained at the Alliance and child care provider level. Using assumptions derived from current implementation of the model in Colorado, the team estimated the average rate of return separately for family child care homes and center-based providers for each tier of service. (author abstract)