What is your potential return on investment with an SEO campaign?
When looking at investing in an SEO campaign, the first thing you need to know is: how much potential return on investment is there?
Before we start, let’s just clarify that…
ROI stands for Return on Investment. So how much money are you going to potentially get back from the money you put in?
SEO stands for Search Engine Optiomisation. Basically, what is your rank on Google when people search for you.
In this article you’ll go through:
- What is ROI with SEO?
- How many people are searching for you?
- ROI SEO Calculation
- Next Steps
What is ROI with SEO?
How much money can you potentially make from being on the first page of Google.
How much money is a new client worth to you? What is there life time value? Lets use an example business of an electrician. Once you find a good electrician, you are very likely to stick with them, assuming that they are good. This will make a life time value of a new client worth a few thousand dollars (estimated). We use this in the ROI Calculation as getting a new customer is not just a one off amount. These are people that need a service, they find you through a search on Google and because of the service you provide and the level of service you provide, they stay with you and return for jobs in the future.
There are a few variables to take into account when calculating a life time value, such as: How much is your product or service? how many times are your customers going to return to update or reuse your service? How often will they be returning?
This article from kiss metrics goes into more detail and has a really good info graphic to boot!
Now you know your customer value, how many customers are looking for your service?
How many people are searching for you?
Knowing how many people are searching for your particular type of business is massively beneficial to any business. It’s also one of the first steps of an SEO plan.
Before starting an SEO campaign you need to know how many people are searching for you. For example, if you’ve started a website selling jackets for fish, you may think that this is a niche market and there is a whole group of people just waiting for your product… a quick bit of research shows there are zero searches for that keyword (well, one now).
Now say you have a real business. Your report will show you exactly how many people are searching for the service or product you offer. Knowing the exact keywords people are searching for is very, very useful information.
ROI SEO Calculation
Ok, so now to work out the return on investment. You know how much a new client is worth, and you now know how many potential searches you can cater for with your service or product. The calculation would be:
Number of searches X Click through rate X Conversion rate = ROI
The same but with numbers…
3000 X 10% = 300. Thats 300 people potentially coming to your website.
300 X 3% = 9. Of those 300 people, 3% convert to a client on your site.
Lets say your customer life time value is $2000.
That would make your ROI potentially $18,000 per month.
How much would you be willing to pay to add a potential $18,000 to your business? Does this make SEO seem like a good business choice? Yes.
NOTE: Every business is different! Get a free report for your business from here.
If you are looking to start an SEO campaign to boost traffic to your site, make sure you get a ROI assessment. If the ROI is minimal you might be much better off going through an AdWords campaign, or advertising through social media.
Hope you found this article useful, and you have any questions regarding SEO or website stuff then feel free to get in touch and we’d be more than happy to help.