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How much should you invest in SEO?
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The great news about investing in Search engine optimization (SEO) is you can easily measure its performance through Google Analytics. The amount of traffic generated from your search engine optimisation campaign will be easy to see via the amount of organic traffic being generated to your website every month. That’s ok, after the event, but what level of traffic and sales should you anticipate before you invest?
Even though there are no guarantees with SEO and there are many variables beyond your control you can make a forecast of the amount of traffic that you would like to receive from your SEO campaign in the first 3 months and the 3 months thereafter. We recommend that you utilise the Google AdWords Keyword tool to ascertain the total amount of local monthly search for each keyword per month. As a general rule it is fair to conservatively estimate that your site will receive approx 3% of the total search in the first 3 months and this may increase to 6-7% in the 3-6 months period. Obviously the results will vary dramatically, but this at least provides your business a guide as the amount you should invest in SEO.
When calculating the potential return from search engine optimization you should work on a sales lead conversion rate of 3% and lead close rate of 20-25%. The lead close rate from search engine optimisation is generally higher than other forms of marketing due to the fact the person has already prequalified their interest by the keyword they typed into Google. If you are running an AdWords campaign the traffic forecast exercise for SEO is even easier.
Posted on August 25, 2010
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