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Revenue Opportunity Calculator

Revenue Opportunity Calculator

How To Use This Calculator

This calculator is a great way to see how much opportunity there is for your business in ranking in the Top 3 for an important keyword for your business.

This tool is specifically made for Home Service businesses.

At a high level, here are the steps to use the calculator:

1. Competitor Selection

The first 3 inputs for this calculator are “Estimated Traffic From Competitor X”. To find this, you’re going to search the most valuable keyword for your business into Google to see who is ranking highly for that keyword.

An easy way to find your most valuable keyword is by searching this into Google:

Specific Service Company in Your City

For example, if you are a roofing and siding company in Denver, simply search “Roofing Company in Denver

Now when you search this, you’re going to see a see a few things:

For this calculator’s purposes, we’re going to want to skip the Map Pack results and look at the Organic Results. 

Open the Top 3 Organic results, be sure to skip directory websites like Angies List and BBB, stick to actual competitor’s websites. 

You should now have 3 pages open. These are the pages that are likely getting the majority of traffic for the high buying intent keyword that you searched, and subsequently the majority of jobs.

2. Find Your Competitors Traffic Levels

Now that you’ve selected your competitors, you need to check how much traffic that page is getting. 

To do that, we’re going to use Ahref’s Website Traffic Checker, it’s a free tool that you can use to estimate your competitors traffic. 

Take these numbers with a grain of salt, as they are purely estimations. The true traffic numbers are actually usually higher, so these numbers are fairly conservative.

Enter your competitors’ URLs into the tool one at a time. 

Now when you run the tool, you’ll get the traffic number that you need to put into the Calculator.

3. Conversion Rate & Average Customer Value

The rest of the inputs are pretty straightforward – conversion rate and average customer value.

Conversion Rate: What percentage of your website visitors turn into paying customers? We typically estimate 3% based on what we see across our clients, but there are a lot of factors that impact conversion rate. 

If you have your own website conversion data, you can use that percentage instead. 

Average Customer Value: This is another number that will be dependent on your business and where you live. 

For these purposes, we are looking at the average cost of individual jobs, but many times we see customers go back to the same company for their home service needs. 

Earning repeat business indicates a significantly higher Average Customer Value. Again, we’re sticking with conservative estimations here.

Here are Average Customer Values by Specialty:

SpecialtyAverageUpper EndLower EndSource
Roofing$9,377$47,000$5,853https://www.angi.com/articles/how-much-does-roof-replacement-cost.htm
Plumbing$334$950$180https://www.angi.com/articles/plumber-cost.htm
Electrical$347$1,100$163https://www.angi.com/articles/how-much-does-it-cost-hire-electrician.htm
HVAC$350$2,000$130https://www.angi.com/articles/how-much-hvac-repair-cost.htm
Landscaping$3,507$6,045$1,255https://www.angi.com/articles/how-much-does-landscaping-cost.htm

4. The Results

Once you have your inputs, go ahead and run the calculations. 

This tool takes the average of the traffic from the 3 competitors you selected – the average is the monthly traffic you can expect from ranking in the top 3 for that particular keyword. 

This average is then multiplied by the conversion rate to give you the Number Of New Customers.

The final revenue number you see is the Number Of New Customers multiplied by the Average Customer Value. 

This is the expected additional revenue per month for if you were to rank in the top 3 for that keyword. Just from Organic Search.

Important Factors:

  1. The traffic estimations from Ahrefs are pretty conservative, and are typically ~20%+ less than what the true numbers are.
  2. Conversion rate is very dependent on your website, efficiency of converting leads into customers, and a number of other factors. This is a metric that can be improved. 
  3. Average Customer Value: There’s a number of ways you can approach this number. If you want to consider the Lifetime Value of the customer, you can use that number. If you want to only consider the value of the initial job, you can use that number instead. I recommend analyzing this number internally rather than using provided estimations. 
  4. Results: These results are simply from ranking for a set of keywords. When you start to include multiple pages on the site that are driving leads, your Results number can start to get really big, really fast (Yay more money!). To see the value of a full website driving leads, you can use the subdomains selection in Ahrefs instead of Exact URL to pull the estimated full website traffic.

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