SEO Investing
November 18th, 2008 by KenricLast month I spent over $1000 on PPC for Ebiz5. While PPC is an excellent way to get targeted traffic, it’s more of an instant ROI product. If I spend $1000 and make $1300, I’m going to keep spending $1000/mo. However, this should only be one portion of your marketing efforts.
Money spent on SEO is like long term investing. If I spent $700 on SEO last month it would not show a positive return right away. But 6 months later, that $700 investment would start to show. In terms of a real estate analogy I look at money spent on PPC as cashflow and money spent on SEO as increasing equity.
In this past month I’ve dropped my PPC spending to $450. I’ve decided to spend the rest on link building and articles. This is a long term investment and it looks like for the month of November, Ebiz5 will be in the negative. Some of this money is spent on investing in creating new webpages and even SEO for them.
I don’t believe that any business can survive on PPC alone. It must have organic traffic if it’s going to have long term success.
Posted in Ebiz5 | 4 Comments »
Stumble it!
Why not keep the PPC Spend as high as possible and still invest in link building as long as the PPC spend has a positive ROI.
By Peter on Nov 18, 2008
I have been toying with the PPC spending. This month it’s going to be a negative ROI. It could just be due to the economy, I don’t know. PPC spending is a science also, if I spend $100 and get 20% return, it doesn’t mean that spending $1000 will get the same return. You have to balance your CPC and daily limits to get the most ROI.
So if I can spend $1000 PPC to make $250 or spend $500 PPC to make $200 and spend $500 on SEO, which would be the better use of my money.
By Kenric on Nov 19, 2008
In your scenario, I would suggest saving more cash so you can invest in both SEO & PPC.
This is just the variant of the question of how many dollar bills would you give me if I gave you a ten dollar bill in return for each dollar bill :)
By Peter on Nov 20, 2008
I’m not sure what you mean. I can choose to spend more on both. At some point the money spent on PPC will bring back a negative return.
To answer your dollar question I would give you unlimited dollars. But if you said I would give you $10 for $1 on the first $100 and the $9 for $1 on the second $100 and so on. I would stop giving you money at the point where you would give me $1 for $1.
By Kenric on Nov 21, 2008