Have you heard stories about legendary online entrepreneurs who hit it big after getting a #1 rank in several popular search engines? You probably wondered what it would take for you to achieve that elusive #1 spot in the search engine result pages (SERPs). Search Engine Optimization (SEO) plays a vital role in ensuring that your business gets the best possible search engine ranking, which can lead to increased sales for your online company.

What is Search Engine Optimization (SEO)?

Search engine optimization is the process of modifying web page content and meta-information to improve the search engine ranking of the page. Meta-information includes certain HTML tags (title, heading, emphasized text, keyword and description meta-tags), as well as the internal (links between pages on the same site) and external (links between pages on different sites) link structure of a web site.

Impact of High Search Engine Rank on Sales

Internet market research estimates that between 70% and 90% of online shoppers use search engines to find a specific product or service. Let's examine factors that influence sales to see how effective search engine optimization can boost your revenues.

Three metrics are required to forecast online sales: the average ticket, the conversion rate, and the amount of web site traffic:

* The average ticket is the amount of money spent by a customer on a typical transaction. Computer and electronics stores have high average tickets (hundreds or thousands of dollars), while bookstores have low average tickets (tens of dollars).

* Web Site traffic is measured by the number of site visitors, typically expressed as the number of page views per month.

* Conversion rate is the number of sales divided by the number of page views per month, expressed as a percentage.

Let's look at an example. The Ultimate Taupe Widget (UTW) store has an average ticket of $25, a conversion rate of 2%, and gets 5,000 page views per month. The estimated monthly sales are $2,500 ($25 average ticket * 0.02 conversion rate expressed as a decimal * 5,000 page views per month). Achieving a high search engine rank will increase the number of page views, and therefore increase sales. In this example, if traffic doubles to 10,000 page views a month, UTW's monthly sales should (approximately) double as well (to $5,000).

Keep in mind that a high search engine rank will produce a measurable increase in traffic only if there is significant marketplace interest in taupe widgets and your web site appears in the first thirty search engine results.

However, search engine optimization is not going to produce measurable results if there is very little demand for taupe widgets. The #1 spot in search engine result pages is not particularly impressive if only two people search for "taupe widgets" each month. Role of Keywords in Search Engine Optimization

Keywords are words or phrases users provide to search engines to locate information. Search engines examine page content to determine whether a specific page is relevant for a particular search word or phrase. Thus, effective keyword selection is one of the cornerstones of search engine optimization.

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