Is Compounding the key to a high ROI? IMEG tells all! – IMEG Social Media Marketing & SEO
Search Engine Optimization (SEO) VS. Pay-Per-Click (PPC)
Legendary physicist Albert Einstein is attributed to saying that compounding interest is both “the greatest invention in human history” and “the most powerful force in the universe.” While Einstein’s sentiments may have been intended as financial advice, IMEG believes these famous remarks can provide important insights for today’s internet marketers and competitive webmasters as well.
What is compounding?
Let’s say someone gave you a choice: You could either take $100,000 right now, or, get a penny a day for 30 days. But here’s the deal: Each day you would turn in the pennies you got from the previous day and would receive twice the number back. So, on day one, you get a penny. On day two, you get two pennies. And on day three, you get four pennies. So which one would you want?
If you took the $100,000, you sold yourself short. Why? The power of compounding that penny deal would have given you $5.4 million at the end of 30 days. A smart person would have taken the pennies, but a smarter person would have taken both. Don’t believe me, check out this chart .
These same principles can be applied to your company marketing plan at IMEG when investing SEO and PPC. As business owners and IMEG clients the biggest advantage that you hold is is the power to compounding your marketing investments. Compounding is a wonderful part of investing where the interest you earn on your money earns interest at a faster and faster rate and for you this means high ROI’s. Here’s how it works.
How can IMEG help?
It’s always great when young businesses take an interest in saving and investing. The biggest advantage anyone has when it comes to investing is starting early. Having financial smarts when you’re business is still young gives you a leg up in so many ways to your competitor.
(Compounding ) Search Engine Optimization (SEO) The more unique content key terms you publish on a blog or a website the more traffic search engines will send your way. Like interest in a bank, the traffic from search engines to your website may start slow and seem insignificant at first. But if you’re able to stay consistent and continue to publish more content not only post content but publish the right content with proper SEO your time and effort will begin to compound in ways you might not originally expect.
If you’ve got the commitment and determination to be able to plant a hundred seeds of content, it’s easy to see how the growing and compounding effect of content will start to deliver substantial traffic over time.
Below is an actual IMEG client example:
Examples: (Client A ) Invested 15k yearly in organic SEO ranking at IMEG
Six year plan:
Years y1 y2 y3 y4 y5 y6 > SEO Organic terms
Investment 15k 15k 15k 15k 15k 15k > 3rd yr – 500k (RIO) Monthly 15k invest.
ROI Monthly 8k 28k 42k
Some common Objections:
I am a client, you want me to pay a $300.00 budget? Why would I invest if I am naturally ranking high in SEO now.
Reason 1.) Google is and Algorithm and it is changing daily and is extremely perplexed. One day you could be page (1) rank term (1); the next day you could be page (80), rank term (112).
Why is this? Because of the crawling process and amount of new material and protocols developed hourly, Google is designed as a user friendly search engine. It can change its terms and condition at any moment and your business can be hurt from it.
Other reasons you may be hesitant:
SEO is time you can not expect immediate results it is a investment, a leg up on your competitor.
SEO is planting seeds to grow into results.
What if I don’t do it?
Your competitor will. You in-turn lose the ROI.
Ask yourself, what if you lost those rankings tomorrow?
($100,000) Pay-Per-Click (PPC)
Would you give me 1 k if I could get you 6 k in 30 days?
Click through rate goes up and cost goes down. 3 k month to 48 k month immediate results.
Common objective to PPC: My competitors will click me to death? (click fraud exists/ a single IP Address can click all day, but only 1 click is charged a day from a single source.What if a Competitor clicks daily? Google will refund you and discount . If your competitor click once a day they inevitably, will be helping you.
How is this possible? The higher the click rate, plus the refund and cost rate goes down with higher traffic and volume. (Don’t tell you competitor that. )
Example: -Computer Competitor clicks from IP 67,227.231.31
2 clicks -$ .50 per click
3 clicks – $1.50 per click
10 competitors ($5.00 dollars a day) =’s ($150.00 Monthly) =’s (Yearly $1,800.00)
Lets say you drive 2k of people to your site. (Average of this is lower than 1% conversion)
-1k investment Monthly (12k)
ROI -$6350.00 monthly / yearly (76.2k ) 64.2% increase in ROI.