How Much is a #1 Google Ranking Worth?

Will Work for $$$

The following assumes you already have a website, have analytics (such as Google analytics, Hitslink, or ClickTracks) installed, and already rank somewhere on the first page of Google for a keyword phrase which converts.

First, go to the Google AdWords External Keyword Tool. Enter your keyword phrase, turn off synonyms, and fire away. Next choose "Exact" from the Match Type box, find your keyword phrase, and the Approx Avg Search Volume column. This column shows the approximate average monthly number of search queries matching your keywords that were performed on Google and the search network over a recent 12-month period. Note that these numbers are likely inflated. Take note of this number as we will use it later. Next, log into your analytics and get your average conversion rate and average order size over the last twelve months.

We are simply trying to get a rough idea of whether a particular keyword phrase warrants extra effort on our part to rank higher in Google. This exercise will help us understand roughly how much we could make if we improved our positioning in Google. We will not be covering the resource requirements to leap frog your competitors, but you should investigate this before you begin your seo campaign. Sometimes there is a ton of money to be made but the effort would cost more and thus be a waste of your time.

For our example, we will go with file folders (something we do not sell and have no data on) as our keyword with an Approx Avg Search Volume of 33,100. Google owns about 80% of search and the following will clearly display how critical top positioning at Google really is and how dangerous it can be to put all of your eggs in one basket (not a matter of if you will ever lose top positioning but rather a matter of when).

Based on the best data we have, here are the click rates by position in the SERPs, the number of visitors and the revenue based on 1.5% conversion rate and $100 average order:

1. 55% = 18,205 visitors ($27,308)
2. 13% = 4,303 visitors ($6,455)
3. 9% = 2,979 visitors ($4,469)
4. 6% = 1,986 visitors ($2,979)
5. 5% = 1,655 visitors ($2,483)
6. 4% = 1,324 visitors ($1,986)
7. 3% = 993 visitors ($1,490)
8. 2% = 662 visitors ($993)
9. 1% = 331 visitors ($497)
10. 1% = 331 visitors ($497)

So, let us assume you currently rank #7 in Google for file folders. What is the benefit of moving up from #7?

• Move to #4 - you double your traffic
• Move to #3 - you triple your traffic
• Move to #2 - you more than quadruple your traffic
• Move to #1 - your traffic goes up 15x's

Amazing, isn't it? Look at those sales in the #1 spot! So, the lesson is that small upward movements in the Top Ten at Google have a HUGE impact on traffic levels and sales. This clearly demonstrates how effective seo can impact business growth.

For another take on this topic (albeit much more in-depth and complex), head over to Aaron Wall at SEOBooks.com and read How Much is a #1 Google Ranking Worth?.

Do you have a better way? How do you go about this?

Image Credit: Tracy O