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Calculate Local SEO ROI and Value for Clients

June 29, 2015 By: trafucomment

How to price SEO – This is quite a difficult skill. Some companies say to price as low as possible and take on as many people as humanly possible….Others say its better to have 2-3 people paying you £2-3k a month and you have less of the client-hassles such as calls, emails etc to deal with. For local seo clients this is a very important medium too. If you haven’t already read our guest post on local seo 101 then we recommend you check it out, even if you’re only a small business owner, if you have 5-10 hours a month you can drastically increase your rankings.

The video below is really good at explaining exactly what ROI is to an SEO campaign and why its important to price your services based on ROI and not simply competition of an industry, location or keyword.

Local seo valuations are pretty similar too, you want to calculate how much the lifetime value of a customer is to a specific client and you also need to calculate an approximate conversion rate for the website. Now remember this conversion rate will be based on extremely targeted search engine traffic, and hence should be (I say should as it isn’t often the case) very high.

In an example we can take a search volume of 1,000 per month for “seo consultant” and an average lifetime value of a client at £1,000. If you ranked 1st for this time, you would likely pick up around 40% of the total search volume traffic, giving you a figure of: 0.4 x 1000 = 400 monthly visitors.

Now although these visitors are super targeted we might only have a 1-2% conversion rate. If we take 1.5% we can see that we would expect to receive 400 x 0.015 = 6 new clients a month ~ LVC of £1,000 = £6,000 in new earnings and revenue every single month!

This means its worth investing a lot of money to get to this point, as even if your ROI is negative for the 1st 3-6 months, it will be extremely positive after this. (500% + ) And its all about the long game in business and especially in search engine optimisation.

I hope you enjoyed this article and I highly recommend checking out the video above. If you’re looking for more information on this subject. Feel free to visit auto pilot SEO, an seo company basing all quotes and proposals on ROI.

Thanks for reading.

Harry.

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Harry Ford is a digital marketing expert based in the UK. Over the past 10 years Harry has helped over 100 businesses develop online marketing strategies to help generate more sales and expand their locations. For more information on any marketing, business, investing or tech consultations visit the contact page.

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