Have you ever sat down and examine the kind of ROI you would get if you were to invest in any new marketing effort or strategy?
It’s a best practice as a business owner to map out the potential outcome of any new investment you’d make to your business.
Similar to before purchasing new equipment or tools for your operation. You’d do research, ask questions, and compare estimated results to make the right decision.
The results of any investment could be saving you more time, reducing costs, or just making you more money.
For SEO, we can predict results by calculating the return you’ll likely get from committing to SEO.
The calculation is the closest estimate that’s tangible enough for you to see into the future and make the right decisions based on realistic forecasts and scenarios.
By the end of the day, results are all that matters to make progress for your business.
All the numbers are calculated according to the tools that we use to analyze the top keywords being searched for each industry.
(Check out the video to see a live calculation and explanation).
Below are the values we’re calculating for. Keep them in mind as we go through this calculation.
1. Search Volume of those Keywords: 3500
2. Estimated Click-Through Rate: 15%
3. Estimated Conversion percentage: 3%
4. Estimated Value per Client: $1,500
We’ll calculate two businesses in Austin, Texas.
ROI calculation 1: Landscaper in Austin Texas
Let’s say you’re one of our landscaping clients in Austin Texas, interested in SEO. Whether you’d want to meet up at a local Star Bucks or get on a Skype call, we’ll sit with you and have a run through a list of keywords on “Landscaping” being searched for in Austin.
With this list, we’ll want to checkmark all the keywords that are related to your business. Say you offer different types of services such as gardening, masonry work, SOD installation, lawn care, etc.…
We’ll make sure to include any keywords relating to those services in your city.
With the proper keywords selected, we’ll tally up the total search volume.
The total search volume in this scenario is 3500 searches per month for all the keywords you’d want to target.
Let’s assume we put in 6 months’ worth of solid SEO work, and your website is now page 1 on Google for a majority of your selected keywords. One noticeable benefit is seeing actual traffic coming into your website and possibly several leads every month.
Remember, SEO is a long-term strategy, and as we keep working on your SEO throughout the year, you’ll be ranked first page on Google for many (eventually all) keywords.
Continuing with our calculation, getting on page 1 for your selected keywords will now expose you to 3500 searches every month.
Out of 3500 searches, let’s assume about 15% of the people searching for these keywords visits your website:
3500 x 10% = 350 real people are visiting your website every month.
“3500 search and only 350 will be visiting my website?”
You have to take into consideration that every month is different and varies. Sometimes more will visit your website as people become more familiar and aware of your brand every time they see you on the first page of Google.
Assume from the 350 visitors to your website about 3% of them become real paying customers.
350 x 3% = That’s about 10-11 new clients every month for your landscaping business.
Now that 350 doesn’t seem so bad after all, right?
What will 10-11 new clients every month do for your business?
And what does having that extra income genuinely mean to you?
To address these questions, the last part of our calculation is the estimated value per client. What this calculation means is how much each new client is worth to your business.
Let’s say each customer is worth $1,500.
10 x $1,500 = $15,000 estimated additional total revenue every month for your business.
If you service every new client with the best services to your best abilities, they’ll refer friends and speak highly of your business.
As you can see, this gives calculation has already given you a more tangible view of what SEO can do for your business.
Let’s do another example calculation.
ROI Calculation 2: Orthodontics in Austin Texas
Similar to our calculation for our landscaper, we take on the same process for any other business.
Keep in mind these key calculations:
1. Search Volume of those Keywords: 2,340
2. Click-Through Rate: 10%
3. Conversion percentage: 3%
4. Customer Value per Client: $4,000
So here we have about 2,340 total search volume for the keywords related to your practice.
Let’s assume that about 10% visit your website as a result of being on the 1st page of Google for your keywords.
2,340 x 10% = 234 visitors to your website every month.
That’s quite nice. Most clients get eager and think their numbers of visitors should be more than just 10%. Although it can happen in the future, it’s best to start slow and keep the calculation realistic. We’ll explain this in a little bit.
Now from those 234 visitors, assume 3% of them become actual paying clients.
234 x 3% = 7 new clients to your business every month.
Depending on whether your practice can handle this new volume of clients every month, it surely may be an ideal number for some dental practices.
Finally, we calculate the total estimated profit. Let’s say these new clients of yours are coming to you for braces.
As an Orthodontists, you know how to price your services best. What we’ll do is average the price for this example.
What we know is that the average cost of braces varies on:
• how long they’re going to wear the braces, the average is 24 months.
• What type of braces.
• And the location of your practice to charge these prices clients in that area can afford.
Let’s assume the average cost of braces in your practice for this example is $4000. So each of these seven customers has a customer value of $4,000 to your practice.
$4,000 x 7 new clients = $28,000 estimated total income to your practice every month.
Maybe there are additional checkups and appointments that you can upsell as well to make the estimated profit for accurate.
By the end of the day, what does this additional income and profit mean to your practice?
We hear all kinds of stories. Some prefer it, while surprisingly, some may not need it at this point time. But whatever it means to you, proper SEO work done can get an excellent ROI for your business.
Reasons For You to Do This Type of Calculation?
The obvious is seeing the result of things. This calculation helps you see rather than walking in blind.
Many SEO companies hide these critical details and information from clients and make excuses as to why they can’t reveal what they do.
The second thing is it helps you make the right decisions. You don’t want something that wouldn’t be a good fit for your business, even if it brings in more revenue for your business.
This is usually the case; a business sees the potential additional revenue and is eager to jump right in without factoring in the capabilities of their business to handle the new volume of clients.
We see this happen and, don’t like to say it, but will not take some clients on because the quality of their services drop as they try to rush their work, and often ethics get thrown out of the equation.
Having great SEO and being on top of Google requires you to be an actual authority and professional. This means having a great business that services every customer ethically and with great care.
If your business and its quality of services drop, you’ll have a lot of angry customers leaving negative reviews everywhere. Even if you’re on page 1 of Google, these negative reviews will drive away new clients.
SEO gives your business new power and authority, and “With great power comes great responsibility,” as we often like to say.
I this article shed some light and help you make the right decisions on your future investments.
This is a more conservative calculated approach for the ROI you’d get from SEO. We like it that way to keep a realistic measurement of your business’s growth and more control over changes made by Google.
SEO is powerful, and being on the 1st page of Google makes it:
• Easy to find your business when people are searching for your type of services.
• Trust that you are the best source and services since Google recommends you on their 1st page.
• Become a brand that people recognize and become familiar with as an authority in the industry.
We don’t take on many clients per market/industry because there aren’t that many spots on page one of Google. And we prefer to help promote businesses that have strong ethical values in place and provide the best services to their customers.
Is your business a good fit for SEO? Reach out to us to set up a free consultation and SEO audit of your website.