So I have decided to test out the value of a press release. I have placed a press release on PRweb.com, introducing my new real estate software – “Find Local Businesses & Services Widget” to the world.
You may have similar things that you have thought about doing, or want to do to increase visibility and traffic to your website(s).
But the problem comes in, that often times promoting your site will cost money, as is the case in using press releases (there are free press release sites out there, but they don’t get near the exposure that PRweb.com gets).
So the question you should always be thinking about with regard to spending money to promote your business is the ROI, or the return on investment. But how do you quantify the results of a press release?
The short answer is, by understanding how much a visitor is worth to your business, and then multiplying that number by the amount of traffic your press release promotion yields your business.
So in my case, I know that a visitor to my site is worth about 21 cents. I got this number by dividing the number of visitors to my site by the profit that is produced for a given period of time. Here’s the simple form of that equation:
Profit (in Dollars) / Number of Unique Visitors = Profit Per Unique Visitor
Not let put a disclaimer in here, because this equation assumes a lot, like that all visitors are equal (which they may or may not be) and therefore isn’t entirely accurate, especially if your business promotes multiple products to various interest groups.
But in general, if you just want a crude number for a reference, use this number.
Then you need to do multiple that number by the increase in the traffic you receive from the press release. Here’s that equation:
(Profit Per Unique Visitor * Increase in Unique Visitors from Press Release) = Press Release Revenue
Then divide the Press Release Revenue by the Cost of the Press Release, then multiply by 100 to get your ROI Percentage. Here’s that equation:
Press Release Revenue / Cost of Press Release * 100 = ROI Percentage
My press release will go out Thursday, and I will update you on the results.