The Budget: The average lifetime value of a customer is $450. You know that the average purchase is $35. The business makes 20% profit on all sales. Most returning customers buy once a month. Your current monthly sales are $16,000 with a slight increase when seasons change. A steady increase in sales over six months to a 15% increase by month six would mean a total sales increase of $8,400 over the six months and a total lifetime value of around $30,900. Spending $3,000 on the six-month organic marketing campaign would see a return on investment of 106%. The advantage of organic marketing is that it keeps working even after the campaign has ended. This means that the ROI would actually be higher.
Organic social media is anything that happens on social media without paid promotion. When you post as your page but don’t put any money behind this post to “boost” it, you are creating an organic post. If you comment on a business’s post in your news feed, and the “Sponsored” tag does not appear on the post, that action qualifies as organic. In other words, organic actions occur on non-ads.
On April 24, 2012 many started to see that Google has started to penalize companies that are buying links for the purpose of passing off the rank. The Google Update was called Penguin. Since then, there have been several different Penguin/Panda updates rolled out by Google. SEM has, however, nothing to do with link buying and focuses on organic SEO and PPC management. As of October 20, 2014 Google has released three official revisions of their Penguin Update.
hey james - congrats on your success here. just a question about removing crummy links. for my own website, there are hundreds of thousands of backlinks in webmaster tools pointing to my site. The site has no penalties or anything - the traffic seems to be growing every week. would you recommend hiring someone to go through the link profile anyway to remove crummy links that just occur naturally?
PPC gives you the ability to fix your daily budget depending on how much you’re willing to spend. And since you can start off with a small amount, you don’t have to put a heavy investment at stake before testing the waters. Once you know a certain campaign is giving you a good return on investment, you can ramp up your budget and increase your ad spendings without worrying about incurring losses.
People find their way to your website in many different ways. If someone is already familiar with your business and knows where to find your website, they might just navigate straight to your website by typing in your domain. If someone sees a link to a blog you wrote in their Facebook newsfeed, they might click the link and come to your website that way.
Organic is what people are looking for; the rest of these simply put things in front of people who may or may not be seeking what you offer. We know that approximately X number of people are looking for Y every day. So if we can get on front of those people, we have a much greater opportunity to create long-term relationships and increase our overall ROI.