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    Putting a price on rank


    Hi,

    I am trying to do a valuation on a business. One of the dimesions I am looking into is the natural search rank. On niche-specific two-word queries it comes up in the top 3 results our of 120M results. On three-word sector-specific queries it actually comes up number one out of 17M results (I really dont understand why, but that is not the point of this post). This has not been done with any fancy SEO approaches, it just plain simple legit links that we did not actively solicit.

    The sector the business is in generates $1B online per year. The top 10 companies generate 70% of the that revenue and the top 4 are well known and probably dont care about rank. Is there a rule of thumb to apply here? Or should I be looking at something simpler like what the paid listing prices on PPC are and apply some multiplier and adjust for rank/total results?

    And are these formulas on a equivalent cost per month in SEO services or some other basis? I posted this on another forum and havent gotten any response. I'm hoping that this forum is livelier.

    Thanks,
    guy trying to do estimate
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  3. rod@missionop.com
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    Originally Posted by estimator
    On niche-specific two-word queries it comes up in the top 3 results our of 120M results. On three-word sector-specific queries it actually comes up number one out of 17M results
    These numbers are meaningless...

    Let's say Computer Parts & New Computer Parts are the terms

    120M documents contain the words "Computer" and "Parts" but this could be 'as in':

    The body has 319 parts some of which are easily recognized and others are not. We can use this computer software program to view all 319 body parts...

    The "words" are on the page but the "context" of your "targeted phrase isn't there" - and likely of that 120M documents maybe 5K or so are references as a computer shop advertising Computer Parts

    In the second example New Computer Parts an additional word is added to the mix requiring "all" documents to contain all 3 words - the resulting outcome - far less.

    "Rank Value" really doesn't have any value - the visitation rate to some extent does, but ultimately sales conversions define "value" and ultimately determine price.

    The sector the business is in generates $1B online per year. The top 10 companies generate 70% of the that revenue and the top 4 are well known and probably dont care about rank.
    Very astute - as you agree with the above... however, even the "TOP 1" is interested in "MORE SALES" - ranks themselves are meaningless without it.
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    I second -> well put

    "Rank Value" really doesn't have any value - the visitation rate to some extent does, but ultimately sales conversions define "value" and ultimately determine price.
    Although I do believe that SEO efforts are more for driving “quality” traffic up. There are tons of reports on traffic increase differences between a #1 spot and #2 spot, but key part is quality traffic that pertains to what your target market is and what you are selling and not just increasing over all traffic. But when you start talking about conversions to sales there is way more things involved that have nothing to do with keywords / phrases, search engines, rankings, and SEO totally. Mostly things like page design or easy of use and you could go on forever on this. But those things will only take the quality SEO traffic and convert it to actual sales.

    So is there value in it? I think so…. How to determine value? Here is a possible idea that might work for you ->
    And this may work depending on how your web logs and site reporting tools are and how robust your tracking is for when people come into the site.
    1. Determine what keyword/phrases etc. the site pages were optimized for.
    2. Then look through web logs and see what visitors came into the site from a search engine off of those SEO efforts.
    3. Then look at out of those visitors that came in to site due to SEO efforts, how many converted to sales. With that you should be able to see a value in SEO efforts.
    4. And to further this you can compare it to the conversion on the phrases / keyword that brought in traffic to the site that it was not optimized for… But this may make you rethink your SEO efforts..

    But like I said before converting traffic to sales there is a lot more in play than just SEO efforts. But will quality traffic increase sales? Yes. And is there value? Yes. And after all if there wasn’t any value in SEO then why is there such a market demand for it, and not to mention my job.

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