The importance of business model in regards to SEO and Google Ads
The success of my online marketing services is dependant on my client’s business model.
If your business is on the rocks, SEO and Adwords cannot really dig you out of a hole.
Business model is everything.
Rather then talk fluff, let’s talk about two scenarios based off some real world examples I recently reviewed:
client a) dentist, each lead is worth about $500 to him, self employed, one location, typical clients intent is to buy, customers repeat purchase. $500k revenue per year.
client b) private tutor, leads are worth $100, offers in home tutoring service, requires more new leads then returning customers. $85k revenue per year.
Now, dentist vs anything is pretty unfair, but you get the idea.
The point is that both of these businesses can spend $10,000 on Google Ads and SEO over the next 12 months and see differing results.
Due to client a’s business model, they’ll see more revenue growth, each customer is worth more, each phone call is worth more and being based off repeat customers means the business can discontinue advertising after 6-12 months, and rely purely on return customers, word of mouth and organic SEO.
Unfortunately client b) needs to keep running adwords, each job is worth less, and you need new customers.
This is a black and white example, so what about businesses that are doing “well enough”, will SEO and Google Ads work for them?
Let’s say you own a profitable business and you’re able to page yourself a salary of $80k-$120k, can you leverage SEO or Google Ads to earn even more?
The short answer is yes, providing you setup everything correctly.
In terms of Google Ads, you should run a very targeted campaign to your highest paying services. Here’s some examples
* If you’re a physiotherapist- Use Google ads targeting large scale contract providers. Don’t use ads to acquire single patient visits.
* If you’re a builder – target bigger projects, like commercial and industrial works, forget cheap residential stuff.
* If you’re a new business. Use Google Ads to target your local area, use them for 6-12 months to build brand awareness, work very hard to take care of each customer.
In terms of SEO. It’s similar to the above in that, you should align your efforts with the gold. Meet with your SEO provider, and go over your services and allocate a percentage value for them to work on. For example, you may own a large fitness studio. Ask them to work on
Physiotherapy services = 60% (most income)
Class intake = 20% (recurring revenue)
Single memberships = 10% (not that valuable to business but still a core requirement)
Other services = 10%
There’s no point engaging in Google Ads or SEO and targeting your cheap services, or allocating an even amount of effort to all your services.
So, in summary, “blanket SEO and Google ads” are probably a bad choice for most businesses on a budget or bringing in under a million a year in revenue. So for most businesses, you need to focus your advertising to a very specific audience, opposed to a more broad approach.
Spend your efforts wisely.
“If you were to choose one, instagram, facebook, google or youtube ads, which would it be?”
My answer would be….”It’s not a huge deal, focus on acquiring ONE customer, and service the crap out of them, so they become your next marketing tool”. As you know, word of mouth and referrals are much better leads than any internet traffic.
One customer can be the catalyst for 10 or more.