There are three ways to calculate the return on investment to see if online reputation management is worth the cost:
1. ORM Building
2. One Negative Review Equals 30 Lost Customers
3. Lifetime Customer Loss Calculation
If the average customer transaction is about $1,000, then:
The benefit to building a positive reputation can generate $32,000 or more in sales.
The loss can be thirty customers or $30,000 for each negative review.
The loss over the lifetime to the business can be $60,000 or more.
Obviously, the costs could be much higher.
I knew of one lawyer who, because of one negative review on RipoffReport.com, saw the loss of at least $150,000 in one year.