Denver Website Return On Investment ROI

DWS Return of Investment ROI

Website Return On Investment(ROI)

Is a website worth in investment of $5,000? $10,000? $50,000? More?

Many businesses find it difficult to measure the return on investment (ROI) for their marketing investment. It does not have to be this way and we have come across some great clients that track everything. Websites are particularly easy to both track and to anticipate the ROI before we start the website process. This is all part of our website services client engagement process. If we do not believe you will see a substantial return on your website investment, we will tell you so at the initial meeting.


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How to Measure ROI

Potential Market

You are not going to make any sales if you don’t have any visitors. So, estimating the potential online market for your products or services is the first step. This is something Denver Web Success does as part of our free of charge website analysis. We will use Google’s Keyword Planner to see how many people are using search terms that are applicable for your business.

Let’s keep the numbers simple and assume that you have a monthly search volume of 5,000 people using a variety of relevant search terms. We also have to figure in keyword diversity. For example, we may have totaled 5,000 people searching, but that is only for the search terms we identified. Google has stated that about 20% of searches are for terms that they have never seen before. As a rule of thumb, we normally double the anticipated searchers:

Searchers = 2 x 5,000 = 10,000


Of course, just because 10,000 people are searching, does not mean that your website is going to get 10,000 visitors every month. This is a slightly more difficult estimate as it depends on a number of factors; including how well your website ranks, click-through rates, whether we are just targeting organic ranking or also investing in pay-per-click advertising, etc. For example, estimates vary, but it is believed that the top-ranking site in Google gets 30%-40% of the clicks.

Again, let’s keep the numbers simple. We will assume that average search engine ranking gives you 5% of the searchers:

Visitors = 5% x 10,000 = 500

Sales & Profit

That’s a respectable number of visitors. Unfortunately, there are still a few more steps. Even the very best websites won’t make a sale to every visitor. We need to calculate “conversion”. Conversion will vary depending on the goal of your website – you may be looking for a sale in your store, an email or phone contact, or even just capture their email address so that you can run an email nuturing campaign.

Conversion depends on many factors such as design, load speed and usability on the searcher’s device, content relevance (they may be looking for something else), and so on.

If we’re looking at, say, a phone or email contact, most high-quality websites will convert 3%-5% of visitors. If we put 4% into our calculation:

Leads = 4% x 500 = 20


As a final step we need to work out sales and profit.

Those 20 leads are pretty good. They’ve probably already looked at a number of vendors and have chosen to go to the trouble of sending you an email or calling you on the phone. Of course, sales will still depend on a variety of factors such as type of product or service, price, sales process, etc.

Let’s pretend that you believe you will close 50% of the leads. Now we can finally add in your profit – remember, we’re interested in profit, not the total price. If, for example, you make an average $5,000 profit from each new lifetime client, our final calculation comes out at:

Total Profit = $5,000 x 50% x 20 = $50,000 per month

Now, how much would you be willing to invest in a website that would achieve this? Each and every very month? Denver Web Success utilizes an in-house process of analysis, research, design, development, marketing, and continuous improvement to maximize your return on investment.

Try this calculation with your own numbers, or contact Denver Web Success to help you through the ROI process.