There is no definitive research on the return on investment for Search Engine Optimization (SEO), but there are estimates. Profit Works sets the average ROI at 275%, First Page Sage claims 748%, and Tarakeet says 500% to 1220%.

Like most averages, these percentages combine a wide range of numbers to arrive at the average. A $99 special that does a one-off, on-page optimization with a few backlinks is useful only in the lowest competition categories. The effectiveness and cost of SEO vary based on the competition for the primary keywords used, website history, and SEO strategy and goals. A local business can expect to pay $750 to $2000 a month for full-service search engine optimization. Larger enterprises may pay upwards of $20,000.

Selecting an SEO provider

When looking for an SEO company, be clear about your goals, the services you want to focus on, and the customer's lifetime value. A reputable SEO company will work with you to design a specific strategy around these factors.

Getting the page to rank at the top of a Google search will net you around $30% of the searches for the ranking keyword, so unless it is a very valuable, specialized service, you will want to ask your SEO company to rank you for high volume keywords rather than words that are searched less than ten times a month. The company will also be able to tell you which keywords have the least competition and suggest how to specialize your message to reach customers seeking that high-volume, low-competition service.

Calculating the Value of SEO

The formula for calculating the ROI on SEO is quite simple. Simply subtract the cost of your SEO from the revenue from organic traffic—that is, the income from customers who found you through search engines like Google—and multiply by 100. Of course, first, you must track the total cost of the SEO, which includes costs in addition to what you pay the company. This could encompass employee expenses for collaborating with the company and any expenses related to disseminating the optimized content.

According to Ahrefs, calculating the ROI presents several challenges. The first is attribution. Google Analytics can track the customers who came to you through Google searches, but some may have come through other search engines, and others may have searched for your brand or company name after watching an ad or seeing a social media post. In this case, Google Analytics would attribute the entire value to organic search traffic, when other sources actually contributed to bringing that customer to you.

The time between the investment and the return is also a factor. While occasionally you may see results quickly, it often takes months to see the full benefit of an SEO campaign, especially in the case of a new company or website. You should include a minimum time period of six months when contracting with a company. So, how do you select a company that will deliver results?

First, look at their track record. If it is a new SEO company with a very limited track record, do they have training, proven expertise, or certification? Do they have mentors they can turn to for help? Are they using a proven strategy? Most importantly, do you trust them and think you can work with them?

What will your return on your SEO ROI be?

Promises of specific results, like all future predictions, are based on expectations and not guaranteed. However, a return of 275% to 1220% makes an investment in ROI worthwhile. If you work with a knowledgeable professional, they will be able to produce results that will increase your income.