Methodology & sources

How the Reputation Revenue Calculator works

The short answer

There is no credible universal dollar value for a Google review. Anyone who tells you “each review is worth $X” or “go from 4.2 to 4.6 stars and earn $Y” is guessing. So the calculator doesn't do that. Instead it uses your real reputation, your own business economics, and a scenario you control — with arithmetic you can check yourself.

How the calculator works

The calculator asks for five things and multiplies four of them together:

  • Your industry — this only changes the wording and the value unit (a job, a client, or a visit). It never changes the math.
  • Your Google rating and review count— these anchor the experience so it's about your business, but they are not plugged into the revenue arithmetic.
  • Your average customer value — the worth of a typical job, client, or visit. This is your number, not ours.
  • Your close rate — out of every 10 good leads, how many become customers.
  • A scenario you choose — how many additional Google-originated opportunities per month to model (+2, +5, +10, or your own).

The formula

Potential annual revenue = additional opportunities per month × close rate × average customer value × 12 months. That is the entire model. It is deterministic: the same inputs always produce the same number, and every figure in it comes from you or is plain arithmetic.

What the calculator deliberately does not do

  • It does not claim a review is worth a specific dollar amount.
  • It does not predict how many extra customers a higher rating or more reviews will bring.
  • It does not assign a “cost” to a bad review.
  • It does not compare you to a made-up peer benchmark.
  • It does not model search ranking, click-through rates, or local search volume.

Every one of those would require a cause-and-effect coefficient that no one can honestly supply for your specific business. Rather than invent one, we keep the scenario in your hands.

What the research actually supports

Google states that reviews and positive ratings can help a business's visibility in local results, and independent consumer surveys consistently find that people read reviews and factor them into who they choose. That establishes a mechanism and context — reputation influences whether people find and pick you — but it does not give a universal formula linking a number of reviews to a number of customers. We use that evidence to explain why reputation matters, never as a multiplier inside the calculation.

Your numbers stay yours

The calculation runs in your browser. Your average value, close rate, and the resulting revenue are not saved to Laudvi's database or its analytics. They only leave your browser if you ask us to email you the report — and even then we send it and don't keep the financial details. Check your reputation health with the free Scorecard if you want to see where your Google reputation stands today.

Sources

  1. Google — How to improve your local ranking on Google (Business Profile Help)
  2. BrightLocal — Local Consumer Review Survey (annual, consumer review behaviour)