SEO: What’s it worth?

For you to appreciate your Online Marketing investment, consider how many new clients you should see every month. The following formula helps you arrive at that number:
  • LVC = refers to the Lifetime Value of a Customer
  • Spend = is how much the average customer spends with you in a year
  • Years = indicates how long the average customer stays with you
  • Profit = shows how much of that is profit
  • Referrals = tells how many referrals your average customer brings you
 

A Sample Computation

You can see that, if an average customer of yours spends around $50/week, stays two years with you and refers you a customer or two, and then you get 40% of that home, computation would be as follows: The Lifetime Value of a Customer - an SEO example
With $1,000 per month spent on SEO, for it to pay for itself, you need it to bring you a new client every third month, something of an embarrassing performance really. Now maybe you won’t see that money up front, but, even if we get you only three new clients a month, in effect you will be getting a profit of $9,360 for your investment of $1,000, giving you a whopping 900% Return on Investment, right?  What’s more is that the returns become greater the more you invest.