By John Broadbent
This week on Make Your Mark Monday we’ll be talking about what it takes in terms of time and capital to get internet marketing results, and when I say “search engine marketing” I mean search engine optimization or pay-per-click.
Before you come to any agency, and our agency gets a lot of these questions – what is it going to take to get me the results that I’m looking for? So we’ve got a lot of prospective clients that come to the table, and they ask, “What’s it going to take, guys, to make this thing happen?” And before they can even ask that question, they’ve got to have current results. Like, how’s the website performing right now? They also need to know desired results. And we need to move and identify what are good desired results, and, in some cases, what are bad examples of desired results?
A couple things that we hear quite a bit, we hear companies come to us and say, “We want to rank #1 on Google.” Which isn’t bad, of itself, but we really need to understand why, as an agency. We also have clients that say, “Hey, I want to get 10,000 Facebook Likes or 10,000 visits to my website. And those aren’t bad things; we just need to look a little bit deeper and help them identify a couple of things that they really want to see because it’s not about ranking #1, it’s not about rankings, it’s not about website traffic. Really it all comes down to money, and that’s what people want to see from it.
So let’s take this website for an example here real quick. The current results that they’re getting, they’ve got a website conversion rate of 1.5% which means 1.5% of every visit that comes to the website converts. So they’re currently getting about 6,000 qualified website visits per month, and from that they’re getting 90 conversions. So 90 leads on the website.
Then they’ve got a sales team that has a closing rate of 20% from those leads. So, they’re taking those 90 leads, and every month they’re able to close about 18 of those. So, from those, then we take a look at the average sale price. We’ve got $5,000 here for this company which means every month, from the leads that their website is making, they’ve got $90,000 that those leads are actually bringing in to them.
When we look at the desired results, the good example of the desired result is when they identify, “This is what I want: $300,000 in monthly sales coming from website leads. That’s what I want my website to produce.” In order to get to that amount then we’ve got to kind of go back, and let’s say that the sales team isn’t actually going to sell any better, kay, from the website leads. I mean we can go back and help their conversion rate out, or we can go out and help the conversion rate, but let’s say that all this stuff stays the same in terms of the rates that they’re closing everything. What do we need? And we say well we need 60 sales. Our average sale price isn’t going to go up – it’s still going to be $5,000 – so we need 60 sales, which means we need 300 website leads, and that means we need about 20,000 website visitors to come to our website.
With these things at our disposal as an agency, we can really go through and calculate what it’s going to take in terms of time and/or capital in order to get these results.
Any agency can come out and try and promise you a certain amount of time that you’re going to start seeing great results, but if they don’t have a clear understanding of these things, I would be really really leery investing in that type of a business or in that type of an agency because they’re probably just telling you what you want to hear or just trying to sell you really quickly. If you want someone to come in and really help you improve your business, make the money you want – because that’s really what it comes down to doing business online. It’s really just about making the money, or at least, understanding what it is that you really want because these examples aren’t really good examples of desired results.
So tune in Wednesday – we’ll walk through how we use these metrics or these figures right here to answer the question, “How can we get great results?” or “How much time does it take to get great results, or how much capital?”