If you have invested a portion your business capital into search engine optimization for your website, you probably want to know if it is actually worth it. Fortunately, you can determine the actual value of your search engine optimization services by calculating your anticipated and actual return on investments.
Prior to calculating your return on investment values, take note of the amount of money that you have used for San Diego SEO services. Your return on investment should be higher than this amount if you are to experience a profit. For example, an SEO investment of $35,000 should yield a return of at least $180,000 to be considered effective.
To calculate your anticipated return on investment value, you will need to know the average number of monthly visitors on your website, the conversion rate for your website’s e-commerce, and the average value of all orders placed by customers. To calculate how many sales you need to make to break even, you should plug your investment and other values into this calculation:
SEO Investment/Average Order Value
This will provide you with the number of orders that you need in order to prevent money loss. In order to generate a positive return on investment, you will need to have a much larger number of orders at equal or greater order value. For the next step, you will need the number of orders needed to break even and your e-commerce conversion rate:
Number of Orders/Conversion Rate=Traffic Needed to Break Even
If possible, you should increase your traffic beyond this value by a great amount in order to receive a positive return on investment. Take this value, increase it to your expected traffic in a month, and multiply it by your average order value. Plug all of the values into the final calculation:
Anticipated Return on SEO Investment=(Anticipated Revenue of SEO Investment – SEO Investment/ Cost of SEO Efforts
A value of 100% is optimal, while a value such as 20% is very poor. You should use this value to determine if your SEO services are worth investing in.
Start Investing Today
If you’re interested in learning more about SEO services for your business, reach out to Saba, Inc. and request a complimentary website audit and consultation. We are an experienced SEO company San Diego businesses trust, and we offer a wide range of services in addition to SEO including PPC, web design and development, and mobile app development. Call (858) 277-1717 for more information.