Investing in Your Business

How Much Does Digital Marketing Cost?

Digital marketing companies make a huge mistake, and they do it quite often.

When meeting with people – either over the phone or in person – they’ll focus on how much content they’ll create, how many and what kind of links they’ll build, how often they’ll post on social media, how many emails they’ll send out, and a whole lot of other SEO “deliverables.”

We know better: that’s not what you care about.

We get it: you view digital marketing as an investment.

Just like the stock market, if you invest $5,000 per month, you want to know that the agency you hire can (and will) turn that money into well over $5,000 worth of potential business for your company.

Obviously, you still want to know the deliverables you’ll be getting. After all, that’s how you can really understand what’s building your brand and generating leads. However, we understand very well that these deliverables are not ends in themselves.

A digital marketing agency can promise to build 80 .edu links and write four blogs per month for your company, but if these things don’t translate into higher Google rankings for highly searched keywords, a sizable uptick in website traffic, and – most importantly – new business, then they’re worthless.

In the spirit of total transparency, here’s exactly how RDB Design explains our pricing to potential clients.

We base our pricing off of your expected ROI (return on investment), the tangible value of the services we provide for your company in simple dollars and cents.

To do this, we put a value on the potential traffic that our digital marketing efforts will bring in to your website and calculate out how much of that traffic will convert into more business for your company.

We first ask you for some crucial pieces of information.

Straight out of the gate, we’ll want to know your conversion rate. Most businesses can ballpark, in terms of a percentage, how many of their calls turn into new clients, patients, or customers.

For example, if you currently receive 10 calls per month and 5 of them become new customers, you have a 50% conversion rate.

Next, we’ll ask you how much profit a single customer is worth to your business. Sometimes this is a mere $10 and sometimes it can be as high as $10,000. Either way, this number is crucial to our calculation.

Once we know these two variables, we give you a clear-cut projection based on a simple formula we use to calculate your potential ROI if you hire us to run your digital marketing.

Here’s a breakdown – in plain English – of that formula:

First, through tools like SEM Rush and Google’s Keyword Planner, we determine how many monthly searches are being conducted for the cluster of keywords we want to rank your website for.

Next, we estimate out how much of that search pie you can expect to receive if you ranked in the top half of Page 1 of Google for those keywords and phrases.

Then, we take that number and evaluate how many potential leads you’ll receive from that search traffic.

After, we use the conversion rate you gave us to evaluate how many new customers you can expect to receive from the leads we bring you.

Lastly, we multiply the amount of expected customers by the profit-per-client figure you gave us.

Let’s make this even more concrete…

Pretend for a moment that you own a moving company in Baltimore, MD and your profit margin on an average move is $1,000. Also imagine that for every call or contact submission on your website, 30% of them turn into customers.

Based on a keyword cluster focusing on moving related keywords, a local focus on Baltimore, and a few informational queries related to how to pack your things so they don’t break, the amount of search volume for this keyword cluster is approximately 1,500 searches per month.

If you hired RDB Design to do SEO and digital marketing for your business, your website would end up in the top 5 results on Page 1 of Google for many of these search terms. That means 35% of those 1,500 monthly searches would go to your website.

Out of those 525 visitors, you can expect – depending on how optimized for conversions your site is – to transform 10% or more into calls and contact submissions. Out of these 52 leads, given the 30% conversion rate we mentioned earlier, you can expect to bring in 15 new customers per month for a total profit of $15,000.

When a digital marketing agency can show you this, then you know they have their finger on the pulse of how to improve your business’s bottom line.

Anything else is just fluff.

Stop settling for wishy-washy SEOs who just want to sell you links, content, and social media posts instead of real results and research-backed revenue projections.

Click the blue button below to hop on a call with us today. 

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