Why ROI Based Internet Marketing is like Financial Planning

by Alex Wolk, an EO Accelerator participant and founder of Insite Advice and Digital Marketing Aficionado

When people do not understand what an effective internet marketer does, I often compare it to a profession that has been around much longer, that of a financial advisor. A financial advisor, at least a good one, will not offer a generic “one size fits all” strategy, which is all too commonplace in the industry. Rather they will work with their clients to assess their current financial situation and establish realistic financial goals, often retirement savings, college planning, etc. They then ask the client what their risk tolerance is and work to set a realistic timeline for achieving those goals. Based on that information, the advisors develops a customized ongoing plan to best maximize those goals at the present, while providing ongoing consulting to monitor that performance and take advantage of new opportunities as they arise.

They have many investment options at their disposal (stocks, bonds, real estate, etc). The options with the highest upside, often stocks, also have the most volatility. ‘Safer’ investments like bonds and savings accounts have minimal risk but marginal return. The very best advisors will expertly analyze and recommend a combination of these vehicles that will maximize return while minimizing risk. While there are no guarantees that your goals will be achieved with financial advisors, there is a much greater probability of success engaging with these select few consultants, which rightfully puts their services in high demand.

The Internet Marketer

Similarly, the above model can be applied to the internet marketing business. Ineffective, “one size fits all” strategies offered by most “SEO” firms are often doomed to fail precisely because you need a customized strategy to maximize ROI. Unless the client is a fool, the client will discover the ineffectiveness of this model before long and sever the relationship, leading to ill will on both sides and the incorrect perception that internet marketing is a waste of time and money.

A great internet marketer is less interested in vanity metrics like clicks, likes and even SEO rankings. They know they are being hired to bring real value to their clients through conversions, leads and sales. Like a financial advisor, a great internet marketer wants a long term partner for a client, because continued maximum marketing ROI financially benefits both parties.Great marketers meet with their clients to asses their current situation and work in concert to develop a realistic plan for growth that maximizes ROI (Return On Investment). Based on that information, they create an ongoing plan to best maximize those goals at the present, while providing ongoing consulting to monitor that performance and take advantage of new opportunities in the future.

Like financial advisors, internet marketers have a wide variety of investment of their marketing resources, ranging from high ceiling and volatile options like organic search, to effective options with marginal returns like pay-per-click. Newer options like social media ads present themselves regularly and are changing the way marketers design their campaigns or achieve clients’ goals. The very best marketers will expertly analyze and recommend a combination of these vehicles that will maximize return while minimizing risk. There is a much greater probability of success and revenue growth engaging with a knowledgeable and experienced internet marketer, which rightfully puts their services in high demand.