"Is our SEO working?"
Simple question. Surprisingly hard to answer.
Traffic is up — that's good. But is it profitable? Are we making more money from SEO than we're spending on it? Would we be better off putting that budget into paid ads?
Most businesses either don't measure SEO ROI at all (risky) or measure it incorrectly (misleading). Here's how to actually do it.
The basic SEO ROI formula
At the simplest level:
SEO ROI = (Revenue from organic - SEO investment) / SEO investment × 100
If you invest $50,000 in SEO over a year and generate $200,000 in revenue from organic traffic:
ROI = ($200,000 - $50,000) / $50,000 × 100 = 300%
The formula is simple. Getting accurate numbers is the challenge.
Tracking revenue from organic traffic
The first challenge: knowing which revenue actually came from SEO.
Setting up proper attribution
Google Analytics 4 setup:
- Enable e-commerce tracking (if applicable)
- Set up conversion goals for lead forms, sign-ups, etc.
- Create audience segments for organic traffic
- Track goal completions by traffic source
For lead generation businesses:
Connect your analytics to your CRM:
- Capture UTM parameters and source on lead forms
- Pass source data to your CRM with the lead
- Track closed revenue back to original traffic source
The minimum setup:
At bare minimum, you should know:
- How many leads came from organic traffic
- What percentage of those leads converted to customers
- What's the average revenue per customer
Attribution models
How you attribute revenue matters enormously.
First-touch attribution:
Credits the first interaction (where they discovered you).
Good for: Understanding which channels drive awareness.
Problem: Ignores everything that happened between discovery and purchase.
Last-touch attribution:
Credits the final interaction before conversion.
Good for: Understanding what drives immediate action.
Problem: Ignores everything that built trust before the final visit.
Multi-touch attribution:
Distributes credit across all touchpoints.
Good for: Holistic view of customer journey.
Problem: Complex to implement, requires data infrastructure.
What most businesses should do:
Start with last-touch (it's what Google Analytics shows by default). Understand its limitations. Consider first-touch for awareness channels like SEO.
Related reading:
- SEO vs Paid Ads — Comparing channel economics
- Why Your SEO Isn't Working — If ROI is negative, diagnose why
Calculating SEO investment
Be honest about what you're spending.
Direct costs
Content creation:
- Writer fees (freelance or agency)
- Content automation tools
- Editing and review time (value your time)
Tools:
- SEO software (Ahrefs, SEMrush, etc.)
- Analytics tools
- Rank tracking tools
Link building:
- Outreach tools
- Agency fees (if outsourced)
- Time spent on outreach
Technical:
- Developer time for SEO improvements
- Hosting upgrades for speed
- Platform/plugin costs
Time costs (often ignored)
Your time isn't free. If you spend 10 hours monthly on SEO:
- Value your time at your hourly rate (or opportunity cost)
- A founder spending 10 hours monthly at $200/hour implied value = $2,000/month cost
Total investment calculation
Example annual investment:
| Item | Monthly | Annual |
|---|---|---|
| Content (automation) | $200 | $2,400 |
| SEO tools | $100 | $1,200 |
| Time (10 hrs × $100/hr) | $1,000 | $12,000 |
| Technical improvements | $200 | $2,400 |
| Total | $1,500 | $18,000 |
Most businesses undercount by ignoring time. Include everything.
The time lag problem
SEO ROI is weird because investment and return don't happen at the same time.
The pattern:
- Months 1-6: Heavy investment, minimal returns
- Months 7-12: Investment continues, returns begin
- Months 13+: Investment may decrease, returns compound
Why monthly ROI is misleading:
Month 3: Investment = $1,500, Revenue from organic = $200
Monthly ROI = -87%
Month 18: Investment = $500, Revenue from organic = $15,000
Monthly ROI = 2,900%
Both numbers are "true" but neither tells the full story.
Better approach:
- Calculate rolling 12-month ROI
- Track cumulative investment vs. cumulative return
- Set a 12-18 month evaluation period before judging ROI
Comparing SEO to paid ads
The most useful comparison for most businesses.
Calculate Customer Acquisition Cost (CAC)
Paid ads CAC:
Total ad spend / Customers acquired from ads
Example: $5,000 monthly spend / 10 customers = $500 CAC
Organic CAC:
Total SEO investment / Customers acquired from organic
Example (Month 18): $18,000 cumulative / 150 customers = $120 CAC
The crossover point
Early on, paid ads have better CAC (instant results). Over time, SEO CAC improves while paid stays constant (or worsens as competition increases).
Typical pattern:
| Month | Paid CAC | Organic CAC |
|---|---|---|
| 3 | $500 | $3,000 (few customers) |
| 6 | $500 | $1,200 |
| 12 | $550 | $400 |
| 18 | $600 | $180 |
| 24 | $650 | $100 |
The crossover typically happens around month 12-18. After that, organic is dramatically more efficient.
Lifetime value consideration
If your customer LTV is $5,000:
- Paid CAC of $500 = acceptable (10:1 LTV:CAC)
- Organic CAC of $100 = excellent (50:1 LTV:CAC)
The difference in profitability compounds as you scale.
Metrics that matter (beyond revenue)
Some SEO value isn't directly captured in revenue attribution.
Brand traffic growth
People who search your brand name specifically. This indicates:
- Growing brand awareness
- Trust and recall
- Less dependence on competitive keywords
Track: Brand keyword search volume and clicks in Search Console.
Content asset appreciation
Content created in Year 1 may still generate traffic in Year 5. The asset appreciates over time.
Unlike paid ads (spend today, traffic today), SEO builds permanent assets.
How to value: What would it cost to buy equivalent traffic via ads?
If 5,000 monthly organic visitors would cost $15,000/month in ads, your content is worth $15,000/month in avoided ad spend.
Pipeline influence (B2B)
For B2B businesses with long sales cycles, organic might influence deals without being "credited."
A prospect who:
- Finds your blog post (organic)
- Subscribes to newsletter
- Attends webinar
- Requests demo
- Purchases
Last-touch attribution credits the demo request. But SEO started the journey.
Track: Ask customers how they heard about you. Survey new leads about their journey.
Competitive position
Are you ranking for keywords competitors are losing? Are you visible where they're not?
This is hard to monetize directly but valuable strategically.
A realistic ROI example
SaaS company, 24-month SEO investment:
Investment:
- Month 1-6: $2,000/month (content + tools + time)
- Month 7-12: $1,500/month (scaled content, less setup time)
- Month 13-24: $1,000/month (maintenance mode)
- Total 2-year investment: $30,000
Returns:
- Month 1-6: 5 customers ($2,500 revenue at $500 MRR)
- Month 7-12: 25 customers ($12,500 revenue)
- Month 13-24: 120 customers ($60,000 revenue)
- Total 2-year revenue: $75,000
ROI calculation:
2-year ROI = ($75,000 - $30,000) / $30,000 × 100 = 150%
But that's not the full story. Those customers continue paying:
- Year 3 recurring from Year 1-2 customers: $XX,XXX
- New customers from existing content: continuing
The real ROI compounds beyond the investment period.
When SEO ROI is negative (and what to do)
Sometimes the math doesn't work out. Diagnose why:
Not enough time:
SEO takes 12-18 months. If you're measuring at month 6, ROI will look terrible. Wait longer before judging.
Wrong keywords:
If you're ranking for keywords that don't drive buyers, traffic won't convert. Review keyword strategy.
Traffic without conversion:
If organic traffic is growing but not converting, the problem isn't SEO — it's your conversion funnel.
Unrealistic expectations:
If you expected 10x ROI in 6 months, you had wrong expectations, not a failing strategy.
Actually not working:
After 18 months with minimal organic growth despite consistent investment, something is wrong. See why your SEO isn't working.
The bottom line on SEO ROI
How to measure:
- Track revenue from organic (set up proper attribution)
- Calculate all SEO costs (including time)
- Use 12-month rolling ROI (not monthly)
- Compare organic CAC to paid CAC
What to expect:
- Negative ROI months 1-6 (investment phase)
- Break-even around months 9-15
- Positive and improving ROI from months 15+
- Compounding returns year 2+
If ROI is negative after 18 months:
- Diagnose the problem (traffic? conversion? targeting?)
- Consider whether SEO is right for your business
- Don't throw more money at something that isn't working
SEO is an investment, not magic. Measure it like an investment — with appropriate time horizons and realistic expectations.
Related reading:
- How Long Does SEO Take? — Understanding timeline expectations
- SEO vs Paid Ads — Full channel comparison
- Affordable SEO for Small Business — Maximizing ROI with limited budget