Is SEO Worth It In 2021?

Having been in the SEO industry since before it was called the SEO industry, I keep asking questions like, “Is SEO worth it?” Reaches. If you Google that phrase, or similar phrases like, “Is SEO dead?” You will find countless articles, usually written by SEO agencies to increase traffic to our websites. As I often tell my clients, the digital marketing industry is really good at making a mountain of dirt to get attention.

The truth is that there is no simple answer to the question of whether or not SEO is worth it. Honestly it depends on your business and your goals. In my opinion, if SEO was useful for your business 10 years ago, it probably works now. It may be more difficult than it was a decade ago, but the returns are still great for those who continue to practice SEO, whether at home or via an SEO agency.

Are SEO services worth it and what is the value of SEO?

I will say that in my years in this business I have come across quite a few clients and situations where I found SEO wasn’t worth it. I am not blind to the fact that there are some companies that will not benefit from this type of work. For example, very small regional machine stores struggle to really benefit from SEO. Can it work? Can they get potential clients? certainly. However, they are often tied to a very small handful of local clients, and the investment they would require can be too high to justify the expense. Sometimes it’s about asking the right questions about marketing.

How much should I pay for SEO?

In most cases, though, there is a very real business case that can be made for a proper SEO investment. The best way to determine if SEO is worth it for your business is to determine the value of the new lead and work backwards on the cost of each lead you are willing to pay. This is a little easier to test with PPC but can still guide you from an SEO perspective. Take this scenario, for example. Let’s imagine that you are an industrial factory that makes capital equipment. Your math might look like this:

Average sale: $75,000

Average Margin: 30%

Average closing price: 30%

To put this in some real world perspective, let’s say your annual SEO investment is $50,000. 

This means that you will need to get two new clients to recoup your investment, as three new clients will bring in a total profit of $25,000. 

To generate these sales, based on your closing rate, you would need a total of 10 leads per year.

If you want to dig a little deeper, you can set your website’s conversion rate, as now, which will tell you how much qualified traffic you need to generate to achieve the lead volumes you need to meet your sales goals.

Is SEO still relevant?

I can tell you that we have many clients where the above numbers are realistic as they relate to average sale, margin and closing price. In these cases, SEO is totally worth it and still a suitable marketing option. Most industrial manufacturing clients generate more than 10 leads per month, let alone each year. In addition, the very simple calculations above do not take into account the lifetime value of these customers. Often times, for a manufacturing company, a lead that converts into revenue can pay for multiple years of search engine optimization services.

Of course, there are differences in average sale, closing rate, quality of leads, and many other factors that change the math. For example, it is very likely that an e-commerce site will have much lower numbers across the board in terms of average sale, margin, etc. However, in these cases, the traffic volume and the number of conversions/transactions are much higher. It is very easy to track sales and margins vs. SEO investment because the revenue numbers are correct in the ROI report.

Is seo worth it for small businesses?

If you are trying to determine whether or not SEO is worth it, take the time to do an exercise like this. SEO, in my opinion, is only worth it if it can help you generate real sales opportunities. 

The SEO game has never been easier. Search engines are not constantly raising the bar for website speed and security, but now they require a careful link building strategy, amazing content marketing, and a comprehensive SEO strategy to compete for competitive search terms. So, to answer the question, “Is SEO worth it?” The easiest way to answer this question is to ask yourself another. Do you sell a product or service that people ask Google about? If the answer is yes, then yes. SEO is worth it.

If you’re interested in learning more about how your SEO strategy can help support your business and sales goals, call to start a conversation.