Many businesses know link building works, but they often struggle to prove its financial impact. Unlike paid ads that facilitate instant conversions, link building is a long-term process.
In this article, you will find the answer to the most pertinent question most marketers ask: “What’s the actual return on investment (ROI) of our link-building campaigns?”
You will also learn why measuring link-building ROI is tricky, the metrics that matter, how to do the math, and how to ensure campaign success.
Why Measuring Link-Building ROI Is Challenging
Link building is a slow and steady process. It may take 3 to 6 months before you see a measurable impact on traffic and revenue.
The challenges that may occur while measuring ROI are:
- SEO algorithms are complex. Backlinks are one ranking factor among many. Content quality, on-site optimization, and technical SEO also influence results.
- Attribution is difficult. Figuring out whether the ranking was caused by new links or by better content updates is not easy.
- ROI isn’t linear. One high-quality backlink can bring in traffic for years, but 10 low-quality links may add no value at all.
- Businesses misjudge timelines. Declaring a campaign “unsuccessful” after 4 weeks often leads to underestimating true ROI. Patience is the key.
Key Metrics to Track for Link-Building ROI
To avoid assuming things, focus on the following metrics to track the ROI:
- Organic traffic growth
Monitor your organic traffic after adding backlinks. Google gets the signal that your site is trustworthy and contains valuable information if it contains good-quality backlinks. So it pushes your site to more viewers. This visibility improves the growth of organic visitors.
- Keyword rankings
Rankings are the bridge between links and traffic. Backlinks help Google understand that your content delivers value to your users and should reach the maximum number of people. If the ranking on your target keyword is increasing, then it’s a clear sign that your backlinking efforts are bringing the results.
- Referral traffic
Backlinks placed on reputable websites often generate direct referral visits. Users click the link because they trust the site it’s published on.
- Domain Rating (DR)
Metrics like DR are critical indicators. A higher DR score means your backlink profile is strong. Your site is considered trustworthy and valuable if authoritative sites link to your website.
- Conversions and revenue
ROI is about results. The question to ask is: Are the new visitors converting into leads, customers, or sales? You can measure this through signups, booked demos, or an overall increase in the sales numbers.
How to Calculate Link-Building ROI: Step-by-Step
Here is a step-by-step process to calculate ROI:
Step 1: Define Campaign Costs
Include all your expenses. They may be:
- Content creation expenses like blog posts, guest posts, and infographics.
- Outreach costs.
- Labor costs: they may be in-house staff salaries or agency fees.
- Paid placements (if applicable).
Step 2: Measure Performance Gains
Track changes in:
- Keyword rankings.
- Organic traffic volume.
- Referral visits.
Step 3: Estimate Conversions
You have the number of increased organic traffic, so calculate how many visitors converted, signed up, or filled out a form.
Example: From 10,000 new visits, you got 200 new leads, then your conversion rate is 2%.
Step 4: Assign Monetary Value
Assign an average value to each conversion. For example:
- If 200 new leads bring 40 sales, and each sale is $500.
Then the total revenue = $500 x 40 = $20,000.
Step 5: Apply ROI Formula
The standard ROI formula is:
ROI = (Revenue from Link Building – Campaign Cost) / Campaign Cost × 100
Example:
- Investment = $5,000
- Revenue generated = $20,000
- ROI = (20,000 – 5,000) / 5,000 × 100 = 300%
That’s the real value of your campaign.
Example: ROI Calculation in Action
Costs:
- Content creation = $2,000
- Outreach tools = $500
- Agency fee = $2,500
Results after 6 months:
- 8,000 additional organic visits.
- Conversion rate of 1.5% → 120 new customers.
- Each customer is worth $300 in lifetime value = $36,000 in revenue.
ROI:
(36,000 – 5,000) / 5,000 × 100 = 620%
That’s a 6.2x return on investment. And as the SEO growth continues, the campaign could generate more revenue for a long time.
Indirect Benefits of Link Building
Link building delivers indirect advantages that compound over time:
- Brand authority & trust
When your link is presented on a credible website, you are established as a credible player in the industry. - Compounding SEO effect
Each new backlink grows the authority of your site. - Better PR & partnerships
Outreach leads to collaborations, podcast invites, or influencer relationships. - Faster indexing of new content
Search engines crawl your website frequently due to its value and authority. As a result, your content is instantly made visible on Google searches, so you can drive more traffic through searches.
Best Practices to Maximize Link-Building ROI
To ensure your link-building campaigns give maximum ROI, follow these effective techniques:
- Quality over quantity
One backlink from a high-authority site can outperform dozens of low-quality ones from less-authority websites. - Target relevance
Build links from sites in your niche or industry to drive an authentic audience who is genuinely interested in what you are offering. - Diversify tactics
Don’t stick to one strategy. Use various strategies like guest posts, broken link building, digital PR, and partnerships. - Track everything
Use tools like Ahrefs, SEMrush, and Google Analytics to measure the impact of traffic on your site. - Align with business goals
Build links that support your sales funnel. Target pages that drive conversions, not just blog posts for traffic.
How Working With a Reputable Link-Building Agency Can Increase Your ROI
A reputable link-building agency, such as 2xSaS, can:
- Save time & resources
We already have outreach networks, tools, and relationships. You don’t need to build anything from scratch. - Focus on quality
We target high-authority sites for backlinks to ensure they create a maximum impact per link on your website. - Provide ROI-driven strategies
We strategize campaigns based on your business objectives and traffic goals. - Offer transparent reporting
Our clear dashboards and progress reports help you see ROI at every stage of the process. - Reduce risk
We use legal methods for growth. We know how to avoid spammy tactics that could harm rankings.
To illustrate this with a real-life example, recently, 2xSaS helped a bootstrapped SaaS company in the email marketing space. The company went from DR 6 to DR 50 in just 5 months.
We built authority step by step, starting with DR 30 to 40 backlinks, then moving up to DR 40 to 50, and finally securing DR 60+ links.
We ensured all backlinks came from niche-relevant SaaS and marketing sites to build credibility and trust with Google.
The results they achieved: stronger rankings, organic traffic growth, and brand recognition without hefty budgets.
In short, a superior agency can transform link building for your business.
If you’re serious about maximizing ROI and are considering partnering with professionals who can execute campaigns with precision, contact 2xSaS. See the difference between average results and exponential ROI.
