How to work out ROI on SEO
By: BEN SYKES

Re: Website Promotion

Simple forumla for working out a client's ROI on an SEO compaign

An extremely simple formula for working out if a client is seeing an attractive return on their website promotion budget is as follows.

400 unique visitors to the website = 1 Sale *

(Source historic data collected over 5 years studying over 220 commercial websites both B2B and B2B)

The value of the sale is determined by a clients average product price (RRP) minus (RRP / 2.5).

Example

Cost Client is paying Benedict £700 per month

Product Profit Clients average sale value (RRP) is £200.00 Profit = RRP - (£200 / 2.5) = £120.0

ROI 125% One sale is worth £120 to a client Benedict is charging £1000 (cost) Break Even + 20% = cost / (Y x £120)

Y = 8 sales per month

Target

As we know that is takes 400 unique visitors to a website to generate one sale. Benedict has a target of 3200 visitors to a clients website, for a client to see a return of 125%.

As a copy of all client enquiries are forward to Benedict to keep a more accurate record of ROI the above formula is not always used, however, historically it is a useful formula to adopt when reviewing a clients strategy.

* Please note that B2B website sales ratios are closer to 200:1

Website Promotion

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