The Maths and Why SEO Rules the Marketing World

SEO Money

The maths of SEO, this is an equation I love to use as it shows me conservative figures of my potential earnings once I have a website ranked number 1 in Google. The equation is pretty simple but I like to use real figures to display the profitability of SEO campaigns. For the example to work you need a few things, first you need a niche that you would be interested in targeting or promoting to business owners and a location or area that has a decent sized population for your promotions to be worthwhile. Try to keep your examples low competition so the SEO for the sites will not be too long, difficult or expensive. Okay to the example!

The examples I like to use are restaurants in a certain area. For this example I will use Swansea, which is a decent sized city in Wales, UK. First you will need to go to the keyword tool and get the information for the keywords you will be targeting. I like to start by checking the exact match search volume for “restaurants in Swansea” “Restaurants Swansea” and “Swansea Restaurants”, all of these searches get a small amount of searches but combine reaches 2100+ total searches per month. But it is important to always round numbers down and be conservative in your estimates of earnings.

If we take 2,000 as the figure for total searches, as SEOs we know that 60% of searchers for a keyword will click on the first organic result, meaning 1,200 people will visit the website per month. Now you need to calculate your websites conversion rate. For the restaurant niche your conversion rates are usually sky high between 5-25% but as this is a conservative estimate we will take 7% as our conversion figure. Which means the website will generate an extra 84 customers per month.

It is important to remember that you will also rank the sites for additional keywords which are searched for meaning you will be able to get hundreds of extra visitors through search terms you didn’t target directly! This is how conservative this estimate is. Also each lead which I am referring too as a customer will not come alone and hence you can usually double, triple or even quadruple the figure that you see at the end. This is why I love this equation, there are so many variables and as long as you are conservative the figure can only increase.

Anyway so, 84 additional customers per month. Now you need to calculate how much each customer is worth to a website, so the average amount each person will pay in a restaurant, a figure I use is £30 as this is the average for most good restaurants in Swansea.

Which gives a figure of 2,520 extra income per month. With the real figure being nearer (7,500 p/m). Which equals an amazing 30,240 extra turnover for the restaurant per year!!! With the actual figure being nearer: 91,000. Do you think you could market that number to a restaurant owner in your area? The answer-YES.

Thanks for reading guys. Always a pleasure.

Tom.

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