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 copy writing ($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 find able 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.
