How Much Should I Pay for SEO Services: Unveiling the Price-Performance Equation
According to marketers, search engine optimization (SEO) is still the best channel for driving ROI.
The problem?
Businesses admit that the biggest SEO risk is their lack of organizational resources.
The truth is …
If you don’t have the time or skills to enhance your SEO, you’ll find yourself struggling to appear in relevant search engine results pages (SERPs).
And when you don’t make those top spots, you simply don’t get the clicks — and you won’t see the traffic you need to grow your sales.
Thankfully, outsourcing your SEO can help. An SEO expert has the experience and expertise to push you up the ranks, improve your organic traffic, and, ultimately, your bottom line.
But, can you afford to hire a professional?
Let’s dive into the costs of SEO and what you can expect to pay.
Understanding SEO Services: What Are You Paying For?
SEO helps you boost your online presence by increasing your search engine visibility.
Think of it this way …
The number one search result on Google gets 30% of all clicks, and the next two results get most of the remaining attention. Search results on the second page get less than 1% of clicks.
In other words, if your content ranks low, few people will see it.
SEO aligns your online content with what your target audience searches for. This helps you rank higher and drive more organic traffic to your website.
There are three main types of SEO:
- On-page SEO. These techniques optimize website content to improve search rankings and attract organic search traffic. Examples include quality content creation and integrating relevant, competitive keywords throughout your content.
- Off-page SEO. These tactics refer to actions that happen outside of your website to impact your rankings. For instance, link building, writing guest posts, and social media marketing.
- Technical SEO. These methods improve the technical aspects of your website, such as page speed and mobile-friendliness. This improves your website performance and enhances the user experience so people stay on your site longer.
When you hire an SEO consultant, they’ll use a variety of techniques that help address these three categories to drive search rankings in different ways.
Here are a few of the main services SEO companies can help you with
SEO strategy planning
Planning aligns your SEO campaigns with your business goals so that your SEO strategies help you reach your wider objectives.
Keyword research
SEO professionals identify competitive keywords to target your ideal audience. This improves rankings as your content speaks directly to your potential customers’ searches.
SEO copywriting
This is the backbone of any successful content strategy. Your SEO providers will consistently create and publish valuable, relevant, keyword-dense content geared toward your specific target audience.
Link building
This strategy aims to get other websites to link back to yours. This shows search engines that you’re an authority on the topic, so they’ll rank you higher.
Ongoing optimization
Your chosen SEO team will make continuous improvements to various elements of your SEO plan. This makes sure your online presence remains strong against competitors and changing trends.
SEO agencies offer a range of services — you may need some or all of these, depending on your project size and scope.
That’s why it’s so important to pick an SEO provider that offers a pricing model in line with your budget and marketing goals.
And speaking of pricing models …
SEO Pricing Models
SEO providers usually offer one of three main pricing models: Hourly, project-based/fixed fee, or monthly retainer.
Some companies will also offer performance-based pricing.
Each model has its own set of pros and cons.
Let’s explore a few below.
Hourly Rates
When you pay hourly rates to your SEO consultant, you pay them for the exact amount of time they spend on your project.
This is a very flexible model where you pay for the actual work the professional completes. It’s good for smaller tasks or irregular SEO assistance.
But, it’s very hard to predict total costs — so your monthly fees can vary considerably. It can also be tough to keep track of the hours they put in.
Project-Based Pricing
Project-based pricing lets you pay a one-off fee for a specific SEO project.
This might be an SEO audit, a content strategy, or a defined link-building campaign.
Since you have a clear scope and deliverables, you know exactly what you’re paying for. This is great for businesses with specific, time-bound SEO needs.
But, you might find costs are a little higher at the beginning than agencies with a retainer model. There’s also less flexibility to adjust your strategy and scope once you get the ball rolling.
Monthly Retainer
With a monthly retainer, you pay a fixed fee, which is perfect if you need ongoing SEO services.
Similar to a subscription, you’ll get ongoing SEO work, continuous support, updates, and improvements.
Since you pay the same each month, the costs are predictable and easier to work into your marketing budget. Plus, ongoing support allows you to adapt and evolve alongside your provider.
But, you’re paying the same costs no matter how much work needs to get done. During slower months, it may feel like you’re paying for services you don’t need. (To get the most from this model, provide consistent briefs and expectations every month or quarter.)
Performance-based SEO
Performance-based SEO means paying based on results. You might pay depending on traffic increases, rankings, or other defined metrics.
This is a low-risk approach, as you pay for results rather than promises. It provides a motive and incentive for your SEO provider to use strategies that work.
But finding the right metric can feel complex. It might also lead your agency to use short-term strategies to push results quickly that aren’t sustainable over time.
How Much Do Businesses Typically Spend on SEO?
SEO costs heavily depend on your pricing model and SEO provider.
For instance, agencies and SEO consultants charge considerably higher rates than SEO freelancers.
Looking at the average, here’s what businesses are paying based on the different models we shared above:
On average, monthly retainers cost between $500 and $1,500, with most clients paying up to $1,000 a month.
The average hourly SEO rates range from $75 to $100 an hour.
Project-based fees are far harder to estimate since they’re specific to the scope of the work. But on average, they fall between $2,500 and $5,000.
Performance-based fees range so considerably that it’s almost impossible to estimate.
Measuring Value: How to Use Price-Performance Equation
To figure out if you’re getting good value from your SEO provider, use the price-performance equation.
It’s simple. Take the cost of the services and divide it by the performance results.
The metrics you use to measure performance will depend on your individual company goals.
For instance, you might measure:
- Keyword rankings
- Organic traffic
- Sales
Think about it like this …
Your focus is on getting articles to rank in the top three search results.
One company charges $1,000 a month.
According to its past client results, it can get 10 articles to the top in six months. That’s $6,000 in total, or $600 for each top-ranked article.
Another company might charge $1,500 a month.
But, this firm has evidence that it can get 20 articles to rank in the top three in just three months. This costs $4,500 in total but just $225 per top-ranking article.
So, when you’re thinking about hiring an SEO agency, ask them to show you real examples of how they’ve helped companies achieve the results you’re looking for. This helps you get a better idea of their price-performance ratio.
What Factors Influence SEO Pricing?
SEO service costs vary greatly.
There are several key factors at play — from the size of your business to your SEO goals.
Here are some of the most important elements that affect SEO prices:
Business Size and Industry
If you run a large business, you’re more likely to need a comprehensive SEO strategy that covers your wide range of products or services.
This drives up the cost.
Scope of the Project
The bigger the scope, the bigger the cost.
If your project encompasses various aspects of SEO across a wide product range, you’ll pay more. If your project demands lots of work quickly, you’ll also pay extra.
The more resources and time an SEO agency has to spend, the higher the costs.
Goals and Objectives
Your goals and objectives impact the cost of your SEO package.
If you have ambitious goals, like ranking first for competitive keywords or doubling your online presence quickly, SEO services will be expensive.
To keep costs from getting out of control, set measurable objectives with your SEO agency so they can tailor their approach to meet your budget.
Level of Competition
The level or degree of competition within your industry plays a pivotal role when it comes to SEO costs.
Highly competitive markets demand more aggressive SEO tactics.
SEO experts need to invest more effort and time into capturing quality links and crafting effective content to outrank established competitors.
Geographic Location
Your business’ location can also influence how much SEO services cost.
If you’re just looking for local SEO for your small-town business, you’ll pay far less than a large corporation trying to infiltrate a big metropolitan area. You might also consider translation services to localize your website properly.
Optimizing by international regions may also help you rank faster. For instance, if you run a business in Iceland, it may be easier to improve your Icelandic keyword rankings than trying to climb the ranks in the US market. This fast track to success may help you save money on SEO fees.
Size of SEO Firm
The type of SEO provider you choose — whether it’s a large SEO firm, boutique agency, or individual freelancers — will also affect your costs.
Large companies might offer comprehensive SEO packages, but you’ll pay a higher price.
Boutique agencies offer personalized services. This means they’re more likely to offer a custom plan to suit your price point.
Individual freelancers often provide the most cost flexibility, but don’t always have the capacity to handle large, complex projects.
Tips for Choosing an SEO Provider
Choosing the right provider can make or break your SEO strategy. The wrong one can derail your focus and scatter your presence so it’s less impactful.
But the right SEO consultant consolidates your presence to target the right customers in the right places.
Here are a few dos and don’ts to consider when choosing an SEO provider:
✓ Do check their track record. Look at successful client stories and online reviews.
✓ Do ask about their strategy and figure out if it aligns with your business goals.
✓ Do look for niche experience. If you’re in a specialized industry, find a relevant provider.
✓ Do ask about communication and reporting. You need clear updates on progress.
✗ Don’t choose based solely on price. The cheapest option might not fit your needs.
✗ Don’t forget to discuss timelines. Unrealistic timelines are a red flag.
✗ Don’t pick providers who practice unethical SEO methods. Search engines will penalize you.
✗ Don’t fall for vague promises. Ask for a clear plan and evidence of this working before.
To select an SEO provider, consider the best match for your specific business needs and budget.
Don’t jump straight to the cheapest option — but also don’t assume that high prices equal the best results.
You need an agency that fits your requirements.
Determine what you need and find someone who’ll tailor their services to it.
To Outsource or Not …
The price you’ll pay for SEO depends on your unique needs, industry, project scope, and company size. But your location and type of provider will also make a difference.
While it’s hard to estimate what you’ll have to pay, you can set your budget somewhere between $500 and $1,000 if you’re paying a monthly retainer. If you need something a little more cost-effective, look for agencies and freelancers with project- or performance-based services.
Remember, you don’t always need to outsource your SEO services. With Opencart, you can enhance your SEO directly in your ecommerce platform for free.
Ready to push yourself up the ranks? Register for a free Opencart account now.
Here’s to your success!
Joanne Camarce grows and strategizes B2B marketing and PR efforts at Codeless.io. She loves slaying outreach campaigns and connecting with brands like G2, Wordstream, Process Street, and others. When she’s not wearing her marketing hat, you’ll find Joanne admiring Japanese music and art or just being a dog mom.