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Today's blog post is a simple yet important illustration of how to determine the ROI (Return On Investment) for specific keywords.  This is specifically important when trying to determine which products to focus on with your website.  When it comes to search engine optimization (SEO), it is a bit of a "choose your battle".  What I mean is you can't go after every single keyword as your "most important".  You need to narrow it down to a manageable sized list that will get you your best bang for your buck.

 

The best way to look at the ROI on a product keyword for example is by using simple math.  

 

The example below shows two TV's that you might sell.  What makes you the most?  

 

32" LCD TV

Retail $305

Presumed Markup $61

Estimated Search Volume – 210


32" LED TV

Retail - $389

Presumed Markup $77.80

Estimated Search Volume – 170

 

1% conversion rate would produce a profit of $128.10 on the 32" LCD TV and $132.26 on the 32" LED TV.

 

As you can see the profits made on the 32" LCD TV are higher and therefore makes sense to put more effort in your SEO.

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