Nearly every business today must decide how much to spend on
search engine optimization (SEO). This isn't an
if question. Robust online marketing is imperative for survival in a web-driven world.
The question every business professional must ask is, "How much will
we spend on SEO?" Keep reading for all the information you'll need to
make that decision, plus some helpful tips on how SEO agencies work so
you can be successful as you forge a crucial partnership with an online
marketing firm.
SEO Payment Models
To understand the dollars and cents discussed below, you must
understand payment models used by agencies. SEO agencies typically offer
four main forms of services and payment:
- Monthly retainer: In this model, clients pay a set
fee each month in exchange for an agreed-upon array of services. The
monthly retainer is the most common payment model, because it provides
the greatest ROI. Monthly retainer arrangements usually include regular
analytics reports, on-site content improvements, press releases, link building, keyword research, and optimization.
- Contract services at fixed prices: Nearly all SEO
agencies sell contract services. Often, before a client is ready to
engage a monthly retainer, they will select contract services that they
want to have completed. The services that an SEO agency offers are often
advertised on their site, along with a price. A typical example of this
is an SEO website audit
which can help determine existing strengths and weaknesses in the
client’s online presence, competitive analysis, as well as keywords that
have the highest potential to return positive ROI.
- Project-based pricing: Project fees are similar to
contract services with the exception that they are custom projects
created specifically for a client. Pricing varies according to the
project. For example, a local cupcake shop may ask an SEO agency to help
them with their local online marketing.
The client decides that they want the agency to establish their social
media accounts. The cupcake business and the SEO agency will decide on
the scope and cost of the project.
- Hourly consulting: This familiar consulting model is an hourly fee in exchange for services or information.
Most SEO agencies use all of these payment models. Likewise, clients
may work with an agency using more than one model. For example, a client
may choose to enter into a monthly retainer, purchase a contract
service, and engage in a special project with the agency, thus entering
into three of the payment models.
Typical SEO Costs
So, what should you expect to pay? Here's a survey of the range of the costs according to the payment models described above.
- Monthly retainer: $750-5,000 per month. Within this
range, the amount that a client pays depends on the size of their
business and the extent of services provided by the agency. On the lower
end of this spectrum are small SEO agencies that offer a limited range
of services. On the upper range are businesses with greater needs
working with full-service SEO agencies. Most businesses pay between
$2,500 and $5,000 for a monthly retainer.
- Contract services at fixed prices: price variable.
Businesses that are just testing the waters in SEO usually choose a
contract service as an entry point. Typical contract services include
things like SEO copywriting ($0.15-$0.50/word), site content audit
($500-$7,500), link profile audit ($500-$7,500), and social media site
setup ($500-$3,000).
- Project-based pricing: price variable. Since there are a variety of projects, there is a wide range of prices. Most projects cost from $1,000 to $30,000.
- Hourly consulting rate: $100-300/hr. SEO consultants, whether individuals or agencies, usually charge between $100 and $300 per hour.
(Some of these figures are taken from a
2011 SEOmoz survey of 500 consultants and agencies.)
Things You Should Be Suspicious of
Any discussion of SEO agencies and pricing isn't complete without a
few warnings. To help you guard against indiscriminate SEO agencies with
unethical business practices, read and heed. Be suspicious of the
following promises:
- Guarantees. SEO firms generally can't provide guarantees due to the constantly changing nature of the industry.
- Instant results. True, some SEO tactics can get
"instant results" by gaming the system. Be warned that these can hurt
you in the long run. Instant results often involve SEO practices that
are against webmaster guidelines put out by search engines. Invariably,
Google seeks out these techniques and penalizes them, resulting in lost
rankings that can take months to recover.
- #1 spot on Google. If an agency promises you the
number one spot on Google, it sounds great. Hopefully, you'll be able to
get it. However, it's not something that a firm can promise to hand
over to you.
- Costs lower than $750/month. When it comes to SEO,
you aren't shopping for the lowest price; you're seeking the best level
of service. Be wary of rock bottom prices or "unbelievable deals."
- Shady link building services. Link building is a crucial part of SEO. You can't have a highly-ranked site without inbound links. But there's a dark side of link building. Link trust
is gaining importance to appear high in the rankings. Before you enter
into an arrangement with an SEO agency for link building services,
ensure that their link building services are ethical, white label
services. You may even wish to ask them where they may be able to gain
links for a business in your industry.
Things to Keep in Mind
As you begin shopping for SEO agencies and making your decision, be mindful of the following points:
- SEO takes time. A monthly retainer is best. Think of SEO as a long-term investment.
Aggressive campaigns and major pushes may have their place, but the
most enduring SEO results come from a long-term relationship. In SEW's
Mark Jackson wrote,
"The real value of SEO efforts are, generally, not realized in the
first month(s) of the effort." It's true. SEOs don't wave a magic wand
and get instant results. Instead, they perform extensive operations that
will produce results months down the road.
- SEO changes, and your rankings will change, too.
The field is full of competitors, and rankings rise and fall with the
changing of algorithms and the entrance of new competitors. One-and-done
SEO tricks simply don't work. It takes constant monitoring to keep your
website ranking well and performing at top-notch levels.
- Not all SEO services are created equal. Again, SEO
isn't about shopping around for the lowest prices. It's about finding
the finest agency you can. Look for an SEO agency that defines its scope
of services, and takes the time to educate you.
- SEO is important. Do it. The point of your website
is to increase and/or improve your business. Unless people are finding
your website, it's not even worth having one. The smart thing is to pay
what it takes to keep your site findable by the people who are looking.
- Hiring an SEO agency is best. You may be thinking,
"Can't I just do this SEO thing on my own?" A tiny percentage of
business owners or professionals have the skill and savvy to do their
own SEO. Even so, comprehensive SEO takes way more time
than most business owners can afford. Even an employee who "knows a lot
about SEO," will be hard-pressed to deliver the level of services and
excellence found in a SEO agency. You'll rarely come out on top if you
try to go it alone, and you'll never get the same level of ROI that you
would with a competent SEO agency.
You Decide
For most businesses today, SEO is the highest ROI marketing effort.
The benefits it provides exceed the value of other marketing approaches –
direct mailing, broadcast advertising, online ads, etc.
No longer do businesses decide whether they need SEO services.
Instead, they decide how much they're going to spend. As long as they
choose a quality SEO agency, their decision will lead to incredible
amounts of revenue.
You can decide how much that's worth to you.
