According to a survey of 1,200 business owners and more than 350 agencies, freelancers, and consultants, the average SEO cost for a small business worldwide ranges from $501 to $1,000 per month. The average SEO cost for a US small business is $2,501 to $5,000 per month.
Remember, when you buy SEO, you get what you pay for. Many companies are not doing very well, and even take advantage of you. A survey of 1,200 entrepreneurs showed this. The most common reason businesses switch from their current SEO provider is dissatisfaction with the business results and outcomes.
There are two main reasons why companies do not work well with SEO agencies. Clients cite lack of education and resources as the number one reason they are dissatisfied with business outcomes and outcomes when hiring an SEO agency.
This means that you as a business owner can have a great experience with an SEO agency. You need to hire an SEO agency who is transparent about the process and devote more resources to SEO. Businesses spending over $500 per month are usually very satisfied with the quality of their SEO services.
We understand why hiring an SEO agency or freelancer can be challenging if you don't understand the ROI to justify the amount of resources you need to allocate to your SEO strategy. That's why we put together this article to educate small businesses about the average cost of small business SEO and how you can justify investing resources in SEO to get the most ROI from any of your current marketing channels.
1. How much should a business spend on SEO?
Before setting an SEO budget, you need to set high-level, realistic business goals for yourself. Your overall business goals must include measurement of results and a realistic timeline for delivering them.
The most important measurement objectives directly impact the bottom line most effectively. In an organic SEO session, goal conversions and revenue directly impact the bottom line.
When setting goals, keep two things in mind.
1.1. Your goals must be achievable.
Having unrealistic expectations and expecting to outperform a competitor that has invested in SEO for years is a pipe dream in the next few months. But it is possible and realistic to beat the competition on a realistic schedule and on a realistic budget.
1.2. You need to give the campaign time.
According to Google's How to Hire SEO YouTube video, you'll need an SEO campaign anywhere from four months to a year. In this way, your SEO agency or freelancer can help your business improve. You will then benefit from these improvements over time.
Remember, your overall business goals will determine the strategies you need to succeed. Begin by setting your business goals, provide the framework for developing an action plan, and provide the budget needed to implement that action plan effectively with a strong return on investment.
Search Engine Journal has put together some great SEO cost calculators to show how to measure the return on investment of SEO, or search engine optimization.
The first SEO calculator is an example of the wrong way to measure small business SEO ROI.
The above approach is wrong because it does not take into account the lifetime value of new customers, which is the most important KPI. For a small business to thrive, it needs regular customers. If you don't calculate the lifetime value of a small business' new customer, the ROI is grossly underestimated.
The proper way to calculate SEO ROI is to add the lifetime value of your customers to your SEO cost calculator, as shown in the image below.
As you can see, adding customer lifetime value into the equation can turn a -60% ROI into a net positive ROI of 200%. The lifetime value of new customers to your small business is the most important KPI for measuring SEO results.
2. How much does SEO and pricing cost for a small business?
The cost of SEO depends on the small business SEO pricing model. There are four factors that affect the final price for a small business.
2.1. Pricing model
SEO agencies and freelancers typically charge according to 4 SEO pricing models: hourly rate, performance-based rate, monthly retention fee, and one-time SEO pricing project fee.
2.2. Service
Every project is different, depending on your business goals. They can be a company at the forefront of your industry or a local company just starting out with the goal of ruling your local town. Depending on your business goals, you need different SEO services.
2.3. Scale
A local business serving a small town costs less than a local business serving an entire state. Fees vary depending on the scale required to conduct the event.
2.4. Experience
SEO agencies and freelancers that have been in business for more than 2 years cost almost twice as much as those that have been in business for less than two years. You pay for 2+ years of experience that consistently delivers strong ROI for small businesses like yours.
3. SEO Pricing Models for Small Businesses
Whether you're hiring an SEO firm or a freelancer, there are four different pricing models available to you when looking for an SEO agency. Pricing models are hourly, performance-based, monthly, and one-time project fees.
3.1. Hourly rate
According to a survey of more than 350 SEO agencies and freelancers, the average hourly SEO cost is $68/hour for freelancers and $134.66/hour for agencies. Hourly sounds great in theory, but the problem is that SEO providers have a financial incentive to take longer to deliver work. The longer the hours, the more money the SEO provider makes. For this reason, we don't recommend hiring an SEO agency or hourly workers to implement your SEO strategy.
3.2. Performance-based
The average cost of a performance-based project varies by expenditure. Performance-based pricing is the best approach for small businesses. This doesn't mean hiring SEO agencies, these agencies will work for free until they generate leads, traffic and new clients. SEO is a long-term strategy, and you can expect to see amazing results in terms of leads, traffic, and new customers for at least 6 to 8 months. We recommend hiring an SEO agency with performance-based results. So when you pay for SEO, you know exactly what you're getting. You only pay when your agency delivers the work.
Even better if you hire an agency with a money-back guarantee, which means that if they fail to deliver what you agreed to, the agency will give you your money back.
3.3. Monthly prepayment
According to a survey of 1,200 business owners and over 350 SEO agencies and freelancers, the average monthly salary for an SEO is $500 to $1,000. Monthly hires are great for working with SEO agencies and freelancers on a monthly basis. The problem with monthly hiring is that you may not get the same amount of work each month. Since the monthly retention fee recurs every month, whatever the SEO agency delivers that month, the agency is already paid. Shady agencies often use these retainers to take advantage of unsuspecting small business owners. If you ask questions about delivered content and results, they bring it back to the reality that SEO takes time. Let’s be honest, SEO takes time to deliver results and is a long-term strategy. However, they allow themselves to be taken advantage of by SEO agencies that hide behind the fact that SEO services take time instead of delivering what they promise you.
Another problem with monthly hires is that agencies may have unrealistic expectations of small business owners. Since the monthly flat fee is calculated on a monthly basis, results are expected every month. On average, SEO services take at least 6 to 8 months to achieve great results. This is why many small business owners leave after only three months with an agency because they don't get the promised results. In fact, anything less than six months is an unrealistic expectation to show results from your SEO strategy.
3.4. One-time program fee
According to a survey of more than 350 SEO agencies and SEO freelancers, the average cost of a one-time project fee is between $500 and $1,000 per project. One-off projects are ideal for strategy and consulting to help your internal teams achieve more efficient results. The problem with one-time project fees is that expectations are not set properly and there is no clear and transparent view of what is being delivered.
When you're expecting a huge immediate ROI of $500-$1,000 from a one-time SEO project, your expectations are unrealistic. SEO is a long-term strategy, and one-time projects are best suited to optimize and improve your existing strategy. Get an outside perspective from an SEO consultant to lay the groundwork for your in-house team's execution over the next 6-12 months. Additionally, a one-time SEO audit can help uncover conversion issues and SEO issues that your in-house team can perform to improve your website, which has generated search engine traffic, leads, and conversions through SEO or search engine optimization.
Another problem is that many SEO agencies and freelancers use these to blackmail unsuspecting small business owners. You can claim that all you have to do is pay $99 and get first place. In fact, when you get what you pay for and you don't have the training, SEO is a long-term strategy that requires many different marketing and technical roles to execute properly. Then you could fall into the trap of being number one advertised by unscrupulous SEO agencies and freelancers for paying $99.
4. How Much Do Small Business SEO Services Cost?
The key to not being taken advantage of is to work with SEO agencies and freelancers who are transparent about their services. These statements must align with your business goals and demonstrate how they will help improve ROI over time. Many SEO agencies and freelancers will hire unnecessary services because they don't care about exceeding your business goals and increasing your return on investment. They are for quick money. For this reason, it's crucial to work with an SEO firm that specializes in understanding your high-level business goals and explaining how the services they offer will increase your sales and market share to achieve your goals.
Hiring an in-house team to implement an SEO strategy will cost you approximately $528,754 per year. Here's what to do with SEO with an in-house team:
- Hire an SEO copywriter. Average annual salary - US$33,840
- Hire an SEO content writer. Median annual salary - US$42,206
- Hire off-page SEO for digital promotion. Average annual salary – $100,000
- Hire a web developer for technical SEO. Average annual salary – $68,025
- Hire a marketing strategist to develop an SEO strategy. Average annual salary – $120,007
- Hire a conversion rate optimization expert to improve your SEO traffic conversions. Average annual salary – $74,676
- Hire a UI/UX designer to improve customer experience and on-page SEO. Average annual salary – $90,000
Total annual cost for in-house teams:
In-house SEO team $528,754 per year. This does not include payroll taxes. Including payroll taxes, you can expect a much higher number. Not to mention the marketing, data analytics, customer relationship management, and SEO software tools your team needs to do their jobs effectively. Costs, including payroll taxes and tools, were approximately $1 million per year.
Now that you understand what building an in-house SEO team really means, what do you think you'll get if you hire an SEO agency or freelancer for $500-$1,000 per month?
With that in mind, low-quality service is nowhere near the cost of hiring and managing an in-house SEO team.
Because of this, only 30% of small businesses say they have had a positive experience with SEO agencies and freelancers because they are not educated in SEO. You're not devoting the right amount of resources to effectively implement an SEO strategy.
The actual average SEO cost for a small business to hire an effective SEO agency or freelancer that delivers great results is about $2,500 to $5,000 per month. Expect this number to increase significantly for large and small businesses that need domestic and international reach. Our SEO services start at around $3,500 per month and scale up based on the size your small business needs to meet and exceed your high-level business goals. We offer a money back guarantee, which means if we fail to deliver what we promise, we will refund your money. Our prices are performance-based, which means we don't get paid until we deliver the work we agreed to. Your SEO strategy will be tailored to your needs and business goals based on what we learn during your free SEO analysis consultation.
5. Local SEO Services
Local SEO services average around $300-$2,000 per month, depending on the pricing model of the services offered, the scope and experience of the SEO agency or freelancer.
6. Frequently Asked Questions
6.1. What is the average cost of SEO services for small businesses?
The average cost of SEO services for small businesses can vary widely depending on factors such as the scope of the project, the level of competition in the industry, and the experience of the SEO service provider. However, most small businesses can expect to pay between $500 and $5,000 per month for ongoing SEO services.
6.2. What factors can impact the cost of SEO for small businesses?
Factors that can impact the cost of SEO for small businesses include the size and complexity of the website, the competitiveness of the industry, the level of customization required, the number of keywords targeted, and the type of SEO services needed, such as local SEO, e-commerce SEO, or content marketing.
6.3. Is investing in SEO worth the cost for small businesses?
Investing in SEO can be worth the cost for small businesses as it can help improve their online visibility, drive more qualified traffic to their website, and increase their revenue over time. However, it is important for small businesses to choose an experienced and reputable SEO service provider and to have realistic expectations for the timeline and results of their SEO efforts.
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