Is SEO A Good Investment For My Business?

how-to-calculate-seo-roi

Like all marketing efforts whether its print ads, paid search or SEO, the numbers have to make sense to your bottom line. The specific numbers and potential will be different for every business, but in short you need to generate more money than you’ll need to invest in your SEO for it to be profitable.

The primary goal of SEO is not just to rank in search engines like Google to generate traffic, but to get targeted and relevant traffic to produce leads and profitable sales! If you want it to serve your business long term, it must be a valuable investment.

Compared to traffic creation methods like paid search advertising, SEO is a long-term play, and it typically takes a few months to see results. However, these results tend to be less expensive overall and serve your business far longer than most other marketing channels.

So what are the important numbers to track?

Please keep in mind your numbers, click-through rates, conversion rates and Avg revenue per customer will vary. This example is simply to illustrate how to calculate the potential value from each keyword using SEO.

1,500 Searches per month
30% Click-through rate (Estimated If you’re ranked #1. Based on the CTR study linked above its actually 31.24%, but we will use 30% so our estimations are a bit more conservative)

click-through-rate-chart
2.0% Conversion rate from visitor to customer
$400 Average revenue per customer

Based on 1,500 total searches per month and a click-through rate of 30% you could potentially get 450 visits to your website each month and convert 9 (2.0%) of them into paying customers at $400 each equals $3600 per month in total revenue from SEO.

Once you have these numbers it easy to compare your estimated revenue vs. your investment in SEO to decide if SEO is a solid investment for your business.

Need help to figure out if SEO is right for your business? Request a free SEO analysis today.

Dale is an accomplished marketer with over 20 years of real-world business sales and marketing experience specializing in e-commerce, email marketing, brand authority, SEO, PPC, SMO and web development. Having served as the Sales & Marketing Director for a multi-million dollar eCommerce company for over a decade, his experience in the trenches provides the foundation most digital marketers just don't have the experience to offer.

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