Understanding Internet Search Technology
2003-12-30| Issue #576
An obvious and relatively easy way to help clients determine the value of a past SEO campaign is to multiply the number of organic SE referrals by the average bid amount for relevant phrases in Overture and AdWords..
A more sophisticated ROI analysis entails helping clients fill out the following formula before doing a PPC campaign (this is an actual formula I used for a client): $400 (acceptable cost of sale) x 1.8% (conversion of prospects who became customers) x 4.6% (3158 April visits divided into 146 online info requests) = $0.33 maximum bid.
VS I don't think you can put an intrinsic value on any position any more than you can guarantee a certain position. With the search engines holding all the cards you can't do either (unless you guarantee a top ranking for a worthless word set).
When you pay for SEO it should be for the commitment, effort, and knowledge. If you know that they know their stuff and they want you to succeed then you probably will. While some rates may seem sky high, SEO is probably not a good area to cut corners in if you are interested in the long term success of your business.
posted by Jen @ 8:44 AM
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