Update – The click-through rates have since changed, and I have updated the link to reflect the latest CTR stats.
A big part of working as a freelance SEO consultant is to convince potential clients on how much revenue they can generate from it. It’s very simple to estimate the revenue if you have the following numbers:
- Search volume of the keywords that will be targeted
- Average click-through rates (CTRs) which can be found easily online
- Average conversion rate of the clients website (you’ll need access to client’s Google Analytics if they have it setup properly)
- Average conversion value of the product or service (again, you’ll need this from the client)
As the image above illustrates, you multiply the search volume with the average CTRs and you’ll get the estimated traffic. The estimated traffic can be used to calculate conversions by multiplying it with the average conversion rate. Finally, multiply the conversions with the average value and you have the amount of revenue you can generate from just one keyword.
It’s best to make sure that the keywords you target are different from each other. This way there won’t be any overlap between the search queries. Its also wise to be clear about the time it will take to get certain ranking positions. Not every SEO campaigns results in the top position being occupied by your client.
My opinion is that SEO isn’t a process that can easily be held to ROI targets. It includes tasks that will help drive sales from other methods and not just organic search listings. But, for the sake of convincing clients of its potential, the above method ought to do.