Welcome back to our exploration of SEO wisdom, where we dissect methodologies that not only measure but maximize the return on your online marketing investments.

In this edition, Jeremy Rivera unveils the intricacies of the “Organic Search ROI Opportunity Calculator,” a powerful tool designed to demystify the complex of SEO returns.

Decoding the SEO Alchemy

In the digital alchemy of SEO, where investments in content, links, and website optimization yield traffic rather than a direct transaction, the traditional ROI calculations take on a nuanced form. The Organic Search ROI Opportunity Calculator steps into this complexity, providing a methodical approach to estimate the potential returns on your SEO efforts.

The Calculative Symphony

Let’s break down the symphony of calculations that powers this ROI calculator:

  1. Target Keywords Input: Begin by entering up to five target keywords, shaping the foundation of your SEO strategy.
  2. Competitor Landscape Analysis: Uncover the top 10 URLs currently ranking for your selected keywords. Delve into the top 100 keywords for each URL, revealing the interconnected web of search phrases.
  3. Volume and Cost Metrics: Gain insights into search volumes and costs per click for each identified query, setting the stage for further analysis.
  4. Click-Through Rate Approximation: Multiply the search volume by an Organic Click click-through rate value, providing a nuanced understanding of the potential traffic at different ranking positions.
  5. Conversion and Sales Metrics: Input your conversion rate, sales close rate, and revenue per sale, transforming potential traffic into actionable leads and revenue.
  6. Realistic Ranking Projections: Create a ranking table for all identified phrases, offering tangible goals for ranking positions, from the first page to the coveted top 3 spots.

Empowering Your Interpretation

The resulting data is a treasure trove of insights. The first row of data illustrates the potential if your site were to rank for half of the discovered keywords. From search volume to revenue, each metric unfolds, providing a comprehensive picture of your site’s potential organic ROI.

Manual Mastery for the Enthusiasts

For those who relish a hands-on approach, performing the calculation manually. Armed with third-party SEO tools for keyword search volumes and organic Click Rate data, you can embark on a journey to estimate your organic ROI with precision.

If your company is spending money on marketing online, you need a method to be able to determine how much that investment in SEO is going to earn.

This fundamental ROI calculation is complicated because search engine optimization is not a 1:1 transaction where you’re directly paying for traffic from Google, like SEM/PPC campaigns, but instead investing money or human resources to create content, links, and an ideal website to receive traffic from search engines like Google.

That traffic then converts to a paying customer, either through lead generation and sales or direct eCommerce purchases.

Here’s the process we use for our ROI calculator:

  • You input your target keyword, up to 5 in total
  • We pull the current 10 urls ranking for those terms
  • We uncover the top 100 keywords for each URL
  • We then pull those terms and de-duplicate but keep an “overlap” number so you can see how many sites are “co-ranked” for these secondary phrases, helping you understand how Google sees the relationship between phrases.
  • We get the search volume for the terms
  • We get the cost per click for each query
  • We multiply the search volume by an Organic Click Through Rate value to approximate its potential for traffic when ranked in a particular position. (#1 is approx 26%-32% depending on the query type)
  • You provide the conversion rate, so we multiply traffic and search volume to get potential conversions.
  • You provide the sales close rate, so we multiply conversions by that value to get potential sales
  • You provide the revenue per sale so we can show how much revenue that represents, per month for that phrase.
  • We create a “likely” ranking table for ALL phrases, giving REALISTIC goals of ranking 1/8,1/4 and 1//2 of these relevant terms either just on the first page or in the top 3 spots. This gives you a “good, better, best estimate chart” for this keyword universe.

How to interpret the first row of this ⬆️ data: If you ranked for half of the keywords we discovered, that would be the amount of search volume in C24. We can then predict how much traffic you could get from your site ranking in positions 1-3 in E24. Based on your input conversion rate, F24 is how many leads your site would then generate. G24 is how many leads would then buy your product or service. H24 is how much revenue those purchases would represent monthly, and annually.

Do This ROI Calculation by hand

If you prefer to do this calculation the long way, here’s how to get that estimate by hand, step by step. You’ll need a 3rd party SEO tool for the keyword search volumes, and the organic CTR rate from Advanced Web Ranking.

Our exploration of the “Organic Search ROI Opportunity Calculator” has illuminated a strategic path through the complexities of SEO investments. This adept tool, meticulously designed to decipher the understanding of organic search returns, unveils a calculative symphony.

From dissecting target keywords and scrutinizing competitor landscapes to estimating potential traffic and translating it into actionable leads and revenue, the calculator provides a holistic understanding of SEO dynamics. Empowering interpretation paints a vivid picture of a site’s potential if strategically positioned in search rankings. For the hands-on enthusiasts, a manual mastery guide adds a personal touch to the journey.

Categories: SEO ROI

Jeremy Rivera

Jeremy Rivera started in SEO in 2007, working at Advanced Access a hosting company for Realtors. He came up from the support department, where people kept asking "How do I rank in Google" and found in the process of answering that question an entire career. He became SEO product manager of Homes.com, went "in-house" at Raven Tools in Nashville in 2013. He then worked at several agencies like Caddis, 2 The Top Design as an SEO manager and then launched a 5 year freelance SEO career. During that time he consulted for large enterprise sites like Smile Direct Club, Dr. Axe, HCA, Logan's Roadhouse and Captain D's while also helping literally hundreds of small business owners get found in search results. He has authored blog posts at Authority Labs, Raven Tools, Wix, Search Engine Land. He has been a speaker at many SEO conferences like Craft Content and been interviewed in numerous SEO focused podcasts.