How To Calculate Link Building ROI When Working With An Agency?
Is your link building campaign profitable? No idea?
Most SEOs spend thousands of dollars every month on building links; however, they do not know how to evaluate their campaign’s success.
This is where link building ROI comes in!
However limited people know how to calculate it.
In today’s article, we will discuss it in layman’s terms. In fact, we have segregated into short-term and long-term ROIs.
TABLE OF CONTENT
- How to calculate short-term link building ROI.
- Example of short-term link building ROI.
- Calculating long-term link building ROI.
- A practical example of calculating long-term link building ROI.
Want to know more in detail? Let’s dive in!
Table Of Content
Calculating Short-Term Link Building ROI
You’re eager to witness quick results after investing in link building with an agency. Let’s decode the mystery of short-term ROI in this fast-paced digital realm.
Your initial move involves crafting a compelling piece of content on your website. The goal?
Drive immediate traffic to this content, expecting a rapid influx of visitors. However, it’s crucial to understand that significant outcomes often take time.
(i) Check Traffic
To gauge short-term success, leverage tools like SEMrush and Ahrefs. Analyze organic rankings and search traffic within a 90-day window before and after your content piece’s publication. This snapshot unveils the immediate impact of your link-building efforts.
(ii) Monitor CTR
Click through rates (CTR) play a pivotal role. Moving from a low rank to the third position yields a 0 to 10% CTR increase, while progressing from third to first secures a 10 to 30% boost. Unravelling the true potential involves understanding search intent alongside total keyword search volume.
Now, translating ranking increases into tangible ROI requires a nuanced approach. Google Analytics and accurate conversion tracking are indispensable. Without these, quantifying the dollar value of increased organic traffic remains elusive.
Let’s put this into perspective with an example.
The Short-Term Link Building ROI Example
For example, let’s take a brand and call it “DreamDigital Inc.,”. This brand decided to boost its online presence and revenue through strategic link building. They partnered with a link building agency, investing $10,000 in a comprehensive link building campaign.
(i) Results Received
The agency got to work strategically placing quality backlinks, optimizing content, and fostering social media engagements. Over the next six months, the results began to unfold. DigitalDreams Inc. witnessed a 35% increase in organic traffic. It helped them climb the SERP ladder and secure a spot on the coveted first page for focus keywords.
(ii) Money Growth
The increased organic traffic wasn’t just a vanity metric; it translated into tangible financial growth. DigitalDreams Inc. experienced a surge in revenue, with a 25% boost in online sales directly attributed to the link-building efforts. The $10,000 investment had become a catalyst for a $30,000 increase in revenue over the campaign period.
(iii) Calculating The ROI: Unveiling The Numbers
To quantify the success, let’s calculate the ROI. The formula is simple:
ROI=(Net Profit/Cost of Investment)×100
In this case:
ROI=($30,000−$10,000/$10,000)×100
ROI=($20,000/$10,000)×100
ROI=200%
DigitalDreams Inc. achieved a remarkable 200% ROI on their link-building investment. For every dollar invested, they reaped a $2 return. The link-building campaign not only paid for itself but doubled the initial investment.
(iv) The True Value: Beyond Immediate Gains
It’s crucial to note that the true value of link building extends beyond immediate gains. The links established during the campaign continue to drive organic traffic. Additionally, the improved SERP ranking maintains DigitalDreams Inc.’s competitive edge. The initial investment was a one-time boost and a springboard for sustained growth.
Long-Term Link Building ROI
Link building is like planting seeds for your website’s growth when you’ve enlisted the help of an agency. Here, you want to ensure those seeds blossom into a lush garden of success.
Calculating your Return on Investment (ROI) for link building becomes crucial, especially in the long term. So, how do you measure the fruits of your labour after about a year?
(i) Firstly, Look At The Change In Domain Authority (DA)
Your website’s DA is like its online reputation score, and you should see a significant shift over the long haul. After around a year of link building, your DA should be dancing to a new tune, a higher one. It’s a signal that your website is gaining authority in its niche.
(ii) Check Your Backlinks Profile
Next up is the growth of backlinks over time. Count the links you’ve garnered, and it’s not just about quantity; it’s about quality. High-quality links are the golden tickets to online success. You should have a diverse portfolio of reputable websites linking back to yours by now. That’s the secret sauce for climbing the search engine ladder.
(iii) But beware Of Massive Link Spikes
These are like sudden rain showers – refreshing if they’re beneficial but disastrous if they’re toxic. If your website experienced a sudden influx of backlinks quickly, scrutinize them. If they turn out to be toxic, it’s like finding weeds in your garden – they need to be uprooted immediately. On the flip side, if those links are legit, you should have seen a surge in traffic during that period.
(iv) Now, Let’s Dive Into The Nitty-Gritty
Calculate how many links you’ve acquired. It’s not just about the number but the quality of the links. Are they from reputable sources? Do they align with your website’s content? Quality over quantity, always.
The Conversion per Traffic Ratio is your magic number. It’s not just about visitors; it’s about turning those visitors into customers. Know how many of your visitors are actually converting. It’s the sweet spot where link building meets business growth.
How many visits and unique visitors are, on average, strolling through your online garden? Track these numbers diligently. A spike in traffic during the time of massive link spikes is a good sign. It means your garden attracts more visitors; hopefully, they’ll stay for a while.
Now, let’s reflect on the benefits of these calculations. Your hard work in link building should result in a boost to your website’s authority. If your DA has bloomed, it’s a thumbs-up.
Quality backlinks should have brought in not just any traffic but the right kind of traffic that converts into loyal customers.
Long-Term Link Building ROI Example
Imagine you’re the proud owner of an online store selling handmade crafts, and you’ve teamed up with a top-notch link building agency to boost your website’s visibility.
Client (you) – CraftyCorner.
Link building partner – LinkMasters.
(i) After A Year Of Collaboration, It’s Time To Unveil The Fruits Of Your Link-Building Journey.
Firstly, let’s check your Change in Domain Authority (DA). Before partnering with LinkMasters, your DA was a modest 25. After 12 months of strategic link building, your DA has skyrocketed to a robust 45.
Secondly, assess the backlinks’ growth over time. LinkMasters has secured 150 high-quality backlinks from reputable crafting blogs, influencers, and forums.
But, wait! During the link building journey, there was a Massive Link Spike. CraftyCorner received 50 backlinks in one month, seemingly out of the blue. LinkMasters quickly investigated, ensuring these links weren’t toxic. Fortunately, they turned out to be authentic endorsements from a popular crafting magazine, leading to a surge in traffic during that period.
(ii) Now, Let’s Delve Into The Specifics
CraftyCorner has acquired 150 links in total. These links aren’t just random; they come from well-established crafting websites, each adding a layer of credibility to your online store. Quality links, not just quantity – that’s the game’s name.
The Conversion per Traffic Ratio is where the magic happens. CraftyCorner has witnessed a conversion rate of 10% during the link building journey. Out of the increased traffic from the link spikes, 15% converted into customers. It’s not just about attracting visitors; it’s about turning them into loyal customers.
On average, CraftyCorner now receives 20,000 visits per month, with 5,000 unique visitors exploring the handmade wonders of your online store. This is a significant leap from the pre-link building era, showcasing the impact of strategic collaboration with LinkMasters.
(iii) Reflecting On These calculations
CraftyCorner’s investment in link building with LinkMasters has paid off. The Change in DA signifies increased authority. The Backlinks Growth showcases a network of quality connections, and the Massive Link Spike brought not just links but a surge in valuable traffic.
BloggerOutreach Can Assist You in Achieving A Positive Link Building ROI
At BloggerOutreach, we firmly believe in the bigger picture of link building. Not only do our links carry link juice, but they also reflect trust. In turn, you receive sustainable results.
Again, our services come with competitive pricing that helps you maintain positive link building ROI.
Furthermore, we are popular for the fastest turnaround time. This also helps with timely results and maintains a healthy ROI.
For more details, visit our website!
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