How do I work out the value of SEO for my website?

You’ve heard the word SEO mentioned or you might even have an idea of what it is (in its simplest of explanations it’s getting all of the things right in your website and then getting the Search Engines to love you). Now you want to work out if the strategy is right for you business and you also would like to quantify what it’s worth to your business.

It might surprise you to know that Google has freely had a tonne of tools that are freely available for many years. Probably one of the better known ones is the AdWords Keyword Planner. This tool which resides in an AdWords account. You will need to create an account and you will need to setup an AdWords campaign but you don’t need to make it live. The tool will give you an approximate amount of traffic available for any chosen keyword phrase. It only gives a rough guide and not an exact number though.

Once you have the number total across your phrases then using another guide that roughly a third of all traffic clicks on the top Organic position in Google (Search Engine Watch take your total traffic and divide by roughly 3 so for example if you had the below monthly traffic estimates:

Gold Coast truck rentals – 500

Truck hire Gold Coast – 500

Cheap truck hire – 500

Truck hire near me – 500

(These are only examples and not real)

In the above you have a total of 2,000 visitors divided by 3. To be in the top position in Google for just these phrases you could expect to see approximately 666 visitors per month.

The next part depends on the success of your website to Enquiry/Sale. Another free tool is Google Analytics which is a piece of code that is installed on your website and will tell you a heap of information for free. Stuff like traffic origin by click, time on site, what pages were visited and whether they made an Enquiry. What is important is to properly set up your goals to track this properly. Based on the above example of truck rentals that site converts to an Enquiry at about 3%. This means that for every 100 visitors there are 3 enquiries made so over 666 visitors there would be approximately 20 enquiries made.

Now the next thing is your sales conversion %. If you aren’t tracking your current metrics then I suggest that you do. Most companies though could tell you how many people they book/sell to as compared to how many make an Enquiry. Let’s say it is 1 in 5 or 20%.

What’s next is the value average of a sale. This varies widely in each business and you might want profit or simply turnover but for the sake of the example let’s use a figure of $200.

Using that metric and all of he above data you could the below numbers:

2000 – Monthly searches

666 – Possible monthly visits

20 – Enquiries

4 – Sales

$800 sales – 4 * $200 sale value.

Now obviously there are a heap of assumptions above and they are not exact numbers but the metrics are fairly similar in terms of traffic/visitors/enquiry% so you now have a good baseline to go and work out if your online Strategy (yep you can apply this to AdWords traffic as well as other types of traffic) is going to be worth it.

If you were paying $1,000 per month for a traffic strategy like SEO you would have to wonder if it was worth it. Many companies that I have come across don’t k ow if their current marketing is working for them but with the above you can get a fairly good handle on it. I hope this helps.

Have a great day!