600% Revenue Increase: ROI of Having a Website
There’s a lot of content in the internet explaining why you need a website. They mostly have the same context, rephrased or quoted from other articles. And you might already know the benefits to your business like telling you that you’re gonna gain credibility, acts as online brochure of your business, staying your business open 24hours, 365 days a year, improve customer support, boosts your marketing and sales strategies and etc. These are all helpful and easy-to-understand information about the benefits of having a website. But try to set aside these usual reasons and know what is the real value of having a website for your business. Why do you need to invest on it and of course, understand the ROI (return on investment).
Just this month, I got a chance to talk with two of my friends to catch up with life updates. They happened to be financial advisors and both of them are planning to make a blog website to boost their credibility. I asked both of them why they wanted to have a website. And digging up information came to a conclusion that they want to boost their credibility. First one wants people to recall his name whenever they talk about financial planning and investment. And the other one wants to improve his market reach through blog posts. Having those goals allowed me to think and reflect for a moment. Both goals will lead to high probability of closing a deal.
During my separate meetings with both of them, I tried opening up Keyword Planner to know the opportunities they can get from having a website.
The image below shows the summary of keywords we came up with.
Let me explain the terms from the graph above briefly based on my understanding.
Keyword — It’s the keyword that your target might type into google search
Avg. Monthly Searches — Average number of searches within the selected area. On the results above, I used “Calabarzon, Batangas, Philippines”. So within the whole location, there’s an average of 1,600 monthly searches for the term “stock market”.
Competition — Number of websites using this keyword within specific location set.
Bids — Price of the bid per click if you’re using Google Ads.
As a summary, below is the details of the whole keyword plan, the cost for you to get 190 clicks (going to your website).
So what’s the sense of doing this keyword planner? This is to know the possible reach of your website within specific location.
Let’s do the math for the ROI that you might get.
Cost per month: 2,000 Pesos ($37)
Clicks: 190 Visitors
Impressions: 2,200 (number of times an ad is viewed, so even if the user who searched for specific keyword didn’t click on your ad, they still see your website on the google search results)
Let’s assume that your website can convert 10% (Note: You can always improve the quality of your content to improve the conversion rate) of your website visitors into customers by inquiring about what you offer.
Out of 190 visitors, possibly there will be 19 inquiries/meetings. (10% Conversion rate)
Out of 19 inquiries/meetings, let’s say there will be 2 Closed Deals.(10% Sales Closing ratio)
Assuming that every closed deal is valued at 30,000 Pesos ($562) and you’re going to get 20% as profit Margin, then you have 6,000 Pesos ($112).
Since we have 2 closed deals, so we have 12,000 pesos ($225) in return of your 2,000 Pesos ($37)
Multiply 12,000 Pesos ($225) by 12 months, then you have 144,000 Pesos ($2700) from 24,000 Peso-investment ($449) in a year.
Summary: 600% increase in your revenue (Based from 10% Conversion Rate)
There’s also a hack by having a good quality content of your website. It increases the chance of closing a sale if you can provide a content that converts. The fact that they are in your page, it means they searched something (based from keywords we selected) showing that they are in need of financial consultation. Let’s assume having 2 closed deals within that 19 scheduled meetings. This is just focused on the goals of my two friends, aiming to have a website and through some research, we were able to see a pure unfair advantage in their field.
My goal of posting this article is to show the opportunities you can get if you are going to have a website. What if you have great products that you can sell, how much do you think will be the ROI of a website to you? But having one is just the start, you are investing on something that can increase your business growth rapidly. There are UI/UX design, SEO optimization, sales funnel development and so on. If you are someone who knows how to do business properly, I’m sure you are aware on how to turn this data into business strategy and win to the top of your industry.