Episode #288
Simple Methods for Calculating ROI on SEO
May 15, 2017

In Episode #288, Eric and Neil discuss simple methods for calculating ROI on SEO. Tune in to learn the formula Eric and Neil use to project an estimated ROI and why some agencies won’t provide this information to their clients.

Time Stamped Show Notes:

  • 00:27 – Today’s topic: Simple Methods for Calculating ROI on SEO
  • 00:38 – Some agencies are not telling their clients the exact ROI that they’re going to get
    • 00:48 – It is indeed difficult to quantify
  • 00:55 – What you can do first is look at the keyword volume
    • 01:00 – Look at how you’re currently ranking and your click-through rate
    • 01:04 – The formula is you take your traffic, you take your click-through rate, then you’ll have your estimated traffic
  • 01:12 – You have to look at your conversion rate on your website
    • 01:18 – If you’re an ecommerce website, look at the average order value of a product or the specific keyword you’re trying to rank for
    • 01:26 – You now have your baseline metric, then you have to project it
    • 01:32 – If you move something from position 10 to position 2, your click-through rate might go from 2% to 20%
    • 01:39 – Then you can map out the estimated revenue or return
  • 02:02 – Once you have the formula, go to SEMrush or Ahrefs
    • 02:16 – Look at all the traffic sources that your competitor is getting traffic from
    • 02:22 – Look at your competitors volume and compare it to your Ahrefs or SEMrush volume
    • 02:27 – Neil goes to Ahrefs; it says he has 100K visitors and his competitors have 200K
    • 02:36 – Ahrefs’ numbers are from Google Analytics
  • 03:15 – Let Eric and Neil know if the formula works for you
  • 03:32 – Most agencies fail to quantify projected ROI
  • 03:52 – Marketing School is giving away a free 1 year subscription to Design Pickle, an awesome design service that Eric has been using
    • 04:27 – Subscribe, rate and review Marketing School
    • 04:31 – Text MARKETINGSCHOOL to 33444
  • 04:41 – If you have other services that you want to give away and Eric and Neil like them, just send them a message
  • 04:50 – That’s it for today’s episode!

3 Key Points:

  1. It is quite hard to quantify the ROI, but there is a way.
  2. Your clients need to know their ROI—this will inform them of whether or not it’s worth it to invest in Ecommerce SEO or Algolia alternatives.
  3. A projected, estimated ROI is better than not having any idea or information at all.

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