Blogging 101: How To Find Financial Value of your Keywords
Posted by
eli
on 8/19/10• Categorized as Consulting
Recently, I read a report that in the United States there are 500,000 people who claim that they are professional bloggers and they make a living by blogging. 
I also come across many bloggers who said they earn sufficient monthly income from their blogs, primarily through search engine optimization (SEO).
Why SEO is important?
SEO is so popular because it enables bloggers and webmasters to get a great return on investment. For one, high rankings for the right keywords can have a big impact on your revenue.
Why is it important to choose the right keywords for SEO? Well, because if you want to earn money from your blog, you can make money by choosing the right keywords.
How to find the financial value of your keywords?
How do you find the financial value of your keywords? Here’s a guide from Axandra, a firm engage in providing professional webmaster tools.
- Start a Google AdWords campaign for the keyword, select “exact match” and point the ad to the page on your website that is most relevant to the keyword.
- Track the impressions and the conversion rate of the ad. To get useful data, you should track at least 500 clicks. With that data, you can make a guess about the value of a visitor that finds your website through that keyword.
Here’s a concrete example
- Your ad might have had 10,000 impressions during a week and 200 visitors have clicked the ad to visit your website.
- 6 of these visitors purchased something on your website and the total profit was $500.
The keyword delivered 200 visitors and 6 buyers to your website. As the total profit was $500, the average single visitor who finds your website through that keyword is worth $2.50 to your business (200 visitors created a profit of $500: $500/200 visitors = $2.50/visitor).
What does this mean for your search engine optimization campaigns?
According to Axandra, the average number one ranking for a keyword has a click-through rate of 40% (according to several studies). In the example above, your ad was displayed 10,000 times.
While your ad was only clicked 200 times, you would get 4,000 visitors per week if your website was listed in the regular results on the top position.
As the average visitors adds $2.50 to your profits (see above) you would earn $10,000 per week with that keyword.
That is $520,000 per year with a single keyword! That is why businesses love search engine optimization.
This sounds unbelievable but search engine optimization makes it possible. It’s simple math and it really works, said Axandra.
source of image: melissaahale.com
It took me 3 reads to understand this one. Am I dumb or what? As you can see I am blogging for a low paying keyword and almost zero offers on CPA. But still adsense is on my blog and now has $55.
I am getting impression of 150 – 300 a day and unique visits of 50 -100. I don’t know how to monetize my blog well. I got low CTR >.<
This post doesn’t make a lot of sense to me.
“According to Axandra, the average number one ranking for a keyword has a click-through rate of 40% (according to several studies). In the example above, your ad was displayed 10,000 times.
While your ad was only clicked 200 times, you would get 4,000 visitors per week if your website was listed in the regular results on the top position.”
If the click through rate is 40%, it means that it is clicked 4000 times. How can you have 4000 visitors from 200 clicks?
Wow! I find it inspiring and somewhat really unbelievable. So have you tried this already and if you did, did you ever succeed? Thanks.