ROI (Return on Investment) is the calculation of the profit or loss made on an investment relative to the cost of the investment. To calculate the ROI of SEO, you need to follow these steps:
- Determine your SEO investment: This includes the cost of any SEO tools, services, and resources you use, as well as the cost of your time and effort.
- Measure the results of your SEO efforts: Track the increase in organic traffic, leads, and sales that can be attributed to your SEO efforts.
- Calculate the revenue generated from SEO: Subtract the cost of your SEO investment from the revenue generated from SEO.
- Determine the ROI: Divide the revenue generated from SEO by the cost of your SEO investment, and multiply by 100 to express the result as a percentage.
Here’s an example of the ROI calculation:
Investment: $10,000 Revenue generated from SEO: $15,000 ROI = (Revenue – Investment) / Investment * 100 = (15,000 – 10,000) / 10,000 * 100 = 50%
This means that the ROI of your SEO efforts is 50%, meaning you have made a 50% return on your investment.