ROI Calculator For PPC vs SEO

[gooser898]

salhammers has helped me add a pie chart to the Document. Big thanks to him.

Originally he added all the stats to a single chart for PPC & SEO.

I've modified his work again to just show the revenue splits for PPC vs SEO.

The chart shows the total revenue split into cost and profit. A very Visual way to really emphasize how much better SEO is.

I'm thinking the main thing that needs to be improved now is just the colours.

New file is attached to this post but I'll update the original post as well. EDIT: I don't have an edit button for my original post? How strange....

Hi,
You have done a super job here. One thing missing. The monthly mangement fee for the PPC. Unless you do PPC management for free?

 

[gooser898]

here is the link for the calculator with PPC monthly fee added. All thanks please go to Dr_Scythe's Avatar awesome good
http://www.mediafire.com/?zvz6dltzs7y77dx

its an excel file i dont think i need a virustotal scan??????

sorry for the double post too

P.S can someone check it Excel is not my strongest skill

P.S.S also does anyone think the conversion rate at 0.12 is right? I mean a conversion for most clients would be a paying customer of course. But you have to get a visitor to the site. get them to the contact us page. Then get them to call the client offering the service. then from the call to a paying customer. Long process. I think 12% is way high??????????? thoughts anyone

 

[johndea]

Could someone else post the URL of the thread? I want to see the formula.

 

[gooser898]

You can see the formulas in excel

or

scroll down here on this page of this thread:
http://www.blackhatworld.com/blackh...ire-earning-15-000-month-three-months-15.html

 

[Dr_Scythe]

here is the link for the calculator with PPC monthly fee added. All thanks please go to Dr_Scythe's Avatar awesome good
http://www.mediafire.com/?zvz6dltzs7y77dx

its an excel file i dont think i need a virustotal scan??????

sorry for the double post too

P.S can someone check it Excel is not my strongest skill

P.S.S also does anyone think the conversion rate at 0.12 is right? I mean a conversion for most clients would be a paying customer of course. But you have to get a visitor to the site. get them to the contact us page. Then get them to call the client offering the service. then from the call to a paying customer. Long process. I think 12% is way high??????????? thoughts anyone

That 12% was just the dummy value provided in the original thread. All the parameters in the spreadsheet are meant to be adjusted on a case by case basis. For businesses with cheap products a higher conversion rate may be very feasable but for a business selling a $1,000 product would be much lower.

Just took a look at your edited version to include PPC campaign management costs Gooser898. Good spotting that I'd missed that. Verified that math you did works and it's all good

 

[gooser898]

That 12% was just the dummy value provided in the original thread. All the parameters in the spreadsheet are meant to be adjusted on a case by case basis. For businesses with cheap products a higher conversion rate may be very feasable but for a business selling a $1,000 product would be much lower.

Just took a look at your edited version to include PPC campaign management costs Gooser898. Good spotting that I'd missed that. Verified that math you did works and it's all good

Yeah i gathered the 12% was an example value. But what do you think would be an acceptable average. Of course i am aware that a diamond dealer will have a lower conversion rate then say a hair salon. But as an average what would you think?

No problem for the edit. I didn't do anything. You done all the work.

 

[Dr_Scythe]

Well you'd be going through this spreadsheet with a possible client most likely. Ask what percentage of people that call/enter the store buy. That would be a good starting block.

For a global average I'd probably say 10%?

 

[utterlyadrift25]

A global average is not 10%. I've seen conversion rates of 1% in some sectors. There is no such global average.

If you are truly struggling then yes ask the person how many people convert. He or she will probably say that x amount of visitors come in and y amount actually transact. Do the mental arithmetic and calculate the conversion rate right there.

If this is not possible, ask to see the Analytics. For sectors that do not have tangible products for sale, the best way to do this (if they have an existing website) is to base the conversion rate by dividing the total amount of unique visits by the number of people that visited the contact page. To further improve this, or tighten up the value, you could check how many people clicked the submit button on the contact page versus the amount of unique traffic to that site over a 3, 6 or 12 month period. If this does not exist, then offer to setup conversion tracking prior to starting your campaign with them. Run it for 1 month, and then tell them how much you can improve their conversion in terms of real money. Always be sure to tell them the estimated value of the increase in conversion.

Failing this, as I said previously, in the original post where I gave everyone the calculation, use some logic. A business selling a service that costs in excess of a $5000 will generally not have a higher conversion rate than 5%. At least it's very rare.

But here are some conversion rates that I've personally witnessed in certain areas.

3rd Largest Office Supplies/Printer Consumables e-store: 12% Conversion rate (SEO/PPC/SMO/Display Advertising/CSE's)
Private Dentists: 5% (SEO/PPC/Local SEO/Offline Marketing)
Public/Private Dentists: 8% (SEO/PPC/Local SEO)
Cosmetic Dentists: 3% (SEO/PPC/Local SEO/Display Advertising)
Accountant: 11% (SEO/Local SEO)
Solicitors: 6% (SEO/Local SEO)
Online Retail (Electrical Goods): 9% (PPC only)

And finally, you should not be running through the excel sheet with the client. It's a slightly noobish thing to do, what you should be doing is showing them two things. Where they are right now, and where they will be if they carry out a campaign with you. So ideally this sheet should be adjusted to hold a pie chart or line graph to show the actual change in business resulting directly from your work with them. No one cares about estimates and global averages, people care about where they could (or will) be.

 

[Dr_Scythe]

A global average is not 10%. I've seen conversion rates of 1% in some sectors. There is no such global average.

If you are truly struggling then yes ask the person how many people convert. He or she will probably say that x amount of visitors come in and y amount actually transact. Do the mental arithmetic and calculate the conversion rate right there.

If this is not possible, ask to see the Analytics. For sectors that do not have tangible products for sale, the best way to do this (if they have an existing website) is to base the conversion rate by dividing the total amount of unique visits by the number of people that visited the contact page. To further improve this, or tighten up the value, you could check how many people clicked the submit button on the contact page versus the amount of unique traffic to that site over a 3, 6 or 12 month period. If this does not exist, then offer to setup conversion tracking prior to starting your campaign with them. Run it for 1 month, and then tell them how much you can improve their conversion in terms of real money. Always be sure to tell them the estimated value of the increase in conversion.

Failing this, as I said previously, in the original post where I gave everyone the calculation, use some logic. A business selling a service that costs in excess of a $5000 will generally not have a higher conversion rate than 5%. At least it's very rare.

But here are some conversion rates that I've personally witnessed in certain areas.

3rd Largest Office Supplies/Printer Consumables e-store: 12% Conversion rate (SEO/PPC/SMO/Display Advertising/CSE's)
Private Dentists: 5% (SEO/PPC/Local SEO/Offline Marketing)
Public/Private Dentists: 8% (SEO/PPC/Local SEO)
Cosmetic Dentists: 3% (SEO/PPC/Local SEO/Display Advertising)
Accountant: 11% (SEO/Local SEO)
Solicitors: 6% (SEO/Local SEO)
Online Retail (Electrical Goods): 9% (PPC only)

And finally, you should not be running through the excel sheet with the client. It's a slightly noobish thing to do, what you should be doing is showing them two things. Where they are right now, and where they will be if they carry out a campaign with you. So ideally this sheet should be adjusted to hold a pie chart or line graph to show the actual change in business resulting directly from your work with them. No one cares about estimates and global averages, people care about where they could (or will) be.

I only said 10% if you have absolutely no data to work with. This value doesn't really affect the difference between PPC & SEO it just helps display more accurate numbers.

I'd argue that working through the spreadsheet highly depends on the customer. For sure with big corperations the where you are now, where you will be after a campaign with us would be the best approach as it is direct and informative and you can then back up those numbers as needed.

But for the average single store operation owners tend to want to be more informed about who/what/when/why you do and working through this example not only keeps them informed and happy but helps build a relationship with them which helps the sale.

 

[gooser898]

I think the spreadsheet maybe wrong. The cost of seo is calculated over 6 months. But the revenue and profit is calculated over 1 month. Thus i dont think it gives the correct ROI

 

[richboom]

can i still have your website link please?

 

[SweTech]

I think the spreadsheet maybe wrong. The cost of seo is calculated over 6 months. But the revenue and profit is calculated over 1 month. Thus i dont think it gives the correct ROI

Would be interesting to know if this is correct or not.