You must be aware that SEO has become an essential component of digital marketing. However, small businesses frequently overlook it, and only half of them include it in their budget at all. Why is this so? It is most likely due to the complexities of SEO cost. SEO services can cost a fortune if you do not know what you are exactly looking for.
Because there is no set price, agencies can charge whatever they want for different types of SEO. This means it is up to you to figure out who provides genuine value for money. With approximately 5.6 billion searches on Google each day, and the majority of people stopping on the first results page, it is well worth investing in an SEO campaign to boost your website’s ranking and grow your business.
This article will explain typical SEO prices, what you should expect to get for your money, and what to look for when selecting an agency. We hope that this guide will assist businesses of all sizes in understanding how to properly budget for high-quality SEO services – and avoid being taken advantage of. But first, let’s start by knowing the types of SEO services.
Types of SEO Services
SEO services can be classified into different types based on the goals of the process and the type of website they are working for. There are three major types of SEO services that are prevalent in the industry, they are:
- National SEO – National SEO is an organic search marketing strategy that promotes your company’s website to rank for broad, highly-searched keyword terms on a national or regional level. When someone types one of these keywords into a search engine, the ideal result is that your site appears at the top of the search results. National SEO strategies are ideal for brands that want to establish a national digital presence.
Businesses, more than ever, need to focus on their online presence in today’s tech-driven society. The number of companies using SEO on a national level is much higher than that of local businesses, making it a highly competitive market. National SEO strategies will transform how your company competes in the market by extending your reach across the country and capturing your ideal client base, resulting in a positive ROI.
- e-Commerce SEO – E-commerce SEO services help businesses attract more high value shoppers by precisely identifying what those visitors need and taking necessary actions to convert them into buyers.
It’s a win-win situation for business as well as the potential shoppers! To succeed in ecommerce, you need an SEO strategy that will help your products rank on page one of Google. This means optimizing all the different aspects of a product’s listing – including its H1 tags, product descriptions, meta data or internal link structure necessary, and website navigation to provide better user experience. It’s important to have a dedicated page for each product that you’re targeting in your keywords.
- Local SEO – Local SEO is an online marketing strategy that helps your business appear more prominently in Google’s local search results. Local SEO can benefit any business that has a physical location or serves a particular geographic area. If you search Google for any important keywords related to your business, a map with three listings appears beneath it. Local SEO can help rank your business in those map results, also known as the ‘3-pack’.
Local SEO has been around for a long time, but it was limited because people only used desktop computers. However, with the recent increase in mobile internet access, mobile search has exploded. It is now crucial for the success of any business offering local products or services, as well as local marketers. Local SEO is an excellent way to get local leads in the form of calls and messages from potential customers.
Depending on your business goals and budget, you can choose either one of these services to excel in your online marketing endeavor. Now that you know about the three types of SEO services, it is time to choose one for your business. Here is more information on each type of service that you might need to make an informed decision.
National SEO is the best way to make your business stand out from competitors. By optimizing a broad range of keywords, you can rank higher in search engine results pages (SERPs) and have more visibility for customers searching online. National SEO is an investment that pays off over time as it helps separate businesses with good content show at top positions when people do searches across the country rather than just ranking for geographic location-based keywords.
It makes sense that a wider audience and more competitive keywords will result in higher benefits for your company. When developing a content strategy for a national SEO service, it is important to understand the changes it may bring once you are done with the tasks included in your planning.
How Much Does National SEO Cost?
Prepare to do some research if you want to determine a fair price for national SEO services or compare SEO providers. Although SEO has become an integral part of the majority of comprehensive marketing programmes and there is a well-established set of best-practice fundamentals, national SEO costs depend on keyword, competition and the industry.
National SEO typically costs:
- $500 – $1200 per month for small-to-medium-sized businesses (SMBs)
- One-time projects typically range from $300 – $1500
- Hourly rates for national SEO consultants range from $50 – $100 per hour
Here are a few factors that will determine the pricing of national SEO services for your business website:
The number of keywords you want your website to rank for will determine the pricing of national SEO services for your business. If you have a limited number of keywords in your list then it should not be a problem for you to get the optimization done in average industry pricing that is between $500 – $1500 per month. However, if the list is long then companies may opt for custom pricing, costing you more.
The competition of your target keywords is an important factor in determining how much national SEO services will cost for your business. If your target keywords have high competition then it will be difficult for an SEO company to get your website ranked for them. So, they might charge more for the extra effort.
Industry competitiveness could play a major factor in deciding SEO services pricing. Businesses that operate in a competitive industry often face ranking hurdles as several websites are trying to rank for the exact same keywords. The SEO company will need to work hard to optimize everything and excel in every task so that your business website ranks best in category.
eCommerce SEO is the process of increasing the visibility of your online store in search engine results pages (SERPs). When people search for your products, you want to rank as high as possible in order to get more traffic. Paid search can bring you traffic, but SEO is much less expensive.
Furthermore, ad blockers and ad blindness can diminish the effectiveness of paid search, so you should optimize for search regardless. Optimizing your headlines, product descriptions, meta data, internal link structure, and navigational structure for search and user experience is some general work that you would want to do as part of an effective ecommerce SEO strategy. Each product you sell should have its own page designed to attract search engine traffic.
How Much Does eCommerce SEO Cost?
You might want to invest in ecommerce SEO now that you know more about it. But now comes the important question: how much does it cost?
eCommerce SEO typically costs:
- $550 – $1600 per month for small-to-medium-sized businesses (SMBs)
- One-time projects typically range from $500 – $2000
- Hourly rates for eCommerce SEO consultants range from $50 – $100 per hour
However, there is no definitive answer to how much eCommerce SEO costs because it varies greatly. Because there is no set price for SEO services, marketing firms can charge whatever they want for ecommerce SEO. This can make finding the right company with the best services at a reasonable price seem daunting.
If you conduct preliminary research, determining what is best for your company will become a less daunting task. Usually, the pricing for eCommerce SEO is based on the following factors:
Number of Products
If you have more products to sell, you will have more pages to optimize. This will increase the cost of SEO services for your business. So, it is always better to check how many product pages are ‘right’ to start SEO work for your business.
Each eCommerce SEO company charges a different fee for SEO services. Pricing structures may differ depending on your business niche. Health is one of the most expensive niche categories when it comes to SEO services cost. The fashion and automotive industry are some other examples of a niche that could dig a hole in your pocket. An experienced company that has done several eCommerce SEO projects in your niche category may possess expertise in it and naturally charge more for that particular service.
Local SEO is a marketing strategy that assists small businesses get online leads, in the form of calls and messages. Local search is an important element of any SEO strategy that targets customers in your region, city, or neighborhood. Simply put local rankings improve with targeted efforts through the use of local keywords where you want traffic from Google Maps pack/Local Pack.
If your target audience is local, you should be familiar with local search marketing. To perform SEO for a local business, you will carry out a series of actions aimed at increasing local search visibility.
How Much Does Local SEO Cost?
One of the best ways to get more leads and calls for your local business is through proper Google map optimization. You must also make sure that your business information such as name, address, and phone number are consistent in all places. It will allow customers to establish trust in your organization.
Local SEO typically costs:
- $300 – $600 per month for small-to-medium-sized businesses (SMBs)
- One-time projects typically range from $100 – $1000
Here’s how much you can expect paying according to different tiers:
Basic Local SEO
Name, address consistency is important
Google local search algorithms reward businesses that have a consistent NAP on their Google Business Profile listing. The more consistent your business’ name and address is on Google, the better the chances of ranking higher in local results. Keeping your data accurate and consistent reduces the risk of mistakes being made by search engines when they process it.
Depending on the bundle you select, you may anticipate paying about $100 – $150 annually for each location when using platforms like Moz Local. Platforms like Synup and Yext typically cost $300 – $500 per year for a single location, with volume savings available to bigger companies.
- Local Citations
Citations are a key part of building your business’s online presence. They help people discover you and can impact local search engine rankings, so it’s important that citations have the right keywords in them for local searches on Google or other platforms like Yelp! Basic high quality citation will ensure accurate data when ranking with these types of websites.
- Small Scale Local SEO Campaigns
For smaller-scale local SEO services, you might have to pay anywhere between $500–$1000 a month, depending on the agency you select and their offerings.
If you are just starting with local SEO or if your firm just runs in one place, a smaller-scale strategy might be the ideal choice. Small-scale SEO campaigns may lack some of the bells and whistles of more extensive strategies, but they can still help your company rank better in searches, bringing in more local clients and increasing income.
Extensive Local SEO
Comprehensive local SEO strategies, such as those provided by PageTraffic, frequently involve both internal website upkeep and external components, such as link and citation optimization, mobile SEO, and online review management. Additionally, they frequently include personalized reports, allowing you to quickly track your ROI and know exactly where your money is being spent.
Expect to pay between $1000 – $2000 per month for comprehensive local SEO services. Although comprehensive campaigns are more expensive, they help you rank well in search results and position your company for long-term success.
It should come as no surprise that the cost of local SEO packages will climb when more in-depth services are offered. However, they are time-consuming; thorough marketing initiatives provide significantly more value and better results.
Different Types of SEO Packages
Not all optimization services are the same. Some will benefit you more than others, while others will simply cost you money for nothing. Having said that, all legitimate SEO services will have benefits and drawbacks. It is simply a matter of doing your research and determining which one is best for you and your company.
We will take a closer look at the most common types of SEO services available today, classified by SEO cost and capability.
Low-Cost SEO Packages
Low-cost SEO packages are plentiful and are usually the first type of SEO service you will come across when you begin your search. These services are typically marketed as budget or starter solutions and cost slightly less than the market average in your area. They typically cost around $500-$750 per month.
Typically, freelancers or agencies offering this type of work are either inexperienced or new to the business. This usually entails attempting poor optimization or even employing ‘black hat’ methods, which technically constitute ‘cheating’ the algorithm. Avoid these at all costs, as Google severely penalizes black hat strategies.
However, you should keep in mind that ‘low-cost SEO’ does not always refer to shady companies. Quality providers can sometimes be found who do not yet have a proven track record.
Building a reputation is an important part of running an SEO firm, so many new companies may begin by charging unsustainable low rates in order to spread their brand and gain a solid customer base. However, because they are new to the business, they may not be as effective as some of the more established agencies.
Mid-Tier SEO Packages
You are unlikely to find high-quality low-cost SEO unless you lucked out in your search or know some excellent people from the start. Although low-cost and mid-range SEO costs have similar risks, there is a significant difference between the two. If an SEO firm charges $5,000 to $8,000 per month for SEO packages, it is usually because they are experienced, good at what they do, and their knowledge is in high demand.
However, you must still conduct research to determine which ones are the best options for you. Mid-Tier SEO packages will typically assist you in optimizing site architecture and creating strategically targeted content.
They will provide a comprehensive strategy and may even take the lead on activities such as producing, updating, public relations (PR), digital marketing, and influencer outreach at the higher end. This service package may help you catch up to your competition, but in order to stay ahead in the long run, you must stick with it. Your rivals will always try to outdo you.
Premium SEO Packages
A high-end SEO package costing between $10,000 and $15,000 per month will help your website compete in highly competitive markets. Not only are you more likely to rank high on a consistent basis, but high-end optimization services are also designed to be long-term. These service providers can handle almost any SEO requirement.
They can do page optimization, improve user experience, resolve technical issues, create detailed marketing funnels, and increase customer conversion rates for your business. This business model is typically found in highly competitive, established companies with numerous specialized teams.
They are usually very competent, but that also means you should prepare a sizable budget before even considering hiring them. If your company’s website is gaining traction and you want to develop a long-term SEO strategy, high-end SEO packages are ideal.
Different SEO Pricing Models
There are numerous SEO agencies and digital marketing firms that provide a wide range of services. They aim to increase organic traffic to your website by improving its ranking in search engine results pages (SERPs) through keyword research, content creation, and link building.
Check what’s included in each SEO pricing model before deciding on a service, as each agency or SEO consultant will differ slightly.
Let’s look at the three major SEO pricing models:
SEO work may be charged on an hourly basis. This option is more likely to be used by freelancers or independent contractors providing SEO services to smaller clients than by agencies or online marketing companies.
Fees are calculated based on the number of hours spent on each project. To ensure that they have billed you correctly, request a breakdown of what they have done during that time from the company. Hourly SEO work typically costs between $100 and $250 per hour.
Larger SEO and marketing firms frequently charge a monthly fee. You will agree to pay a set fee to retain the services of an agency that will perform ongoing SEO work on your site.
Monthly SEO packages frequently include a set of services such as keyword research, competitor research, SEO content writing, technical audits, content marketing audits, link building, digital PR, ongoing SEO and technical consultation, and reporting and insights. However, some agencies will allow you to create a custom plan with a set monthly fee.
A monthly retainer generally costs more than $5,000 per month on average. According to the project a one-time fee may be charged by an SEO agency for a specific project. Before agreeing on the project scope and total cost, you would first discuss your SEO needs and goals. This option allows for greater personalization.
Project Based Services
Project-based SEO services typically cost between $1,000 and $1 million. Smaller businesses that use local SEO could spend around $1,000 per month on each project. Larger enterprises can expect to pay millions of dollars for a project.
Why is SEO So Costly?
If you are tempted to spend your money on paid search rather than SEO, keep in mind that the more you spend on paid search, the more expensive it will become for your business. Moreover, the outcomes might not always be profitable, and you could end up losing a big chunk of your budget.
Experienced SEO companies will not encourage you to opt for paid search during the initial phase of your project and will focus on getting your website technicals corrected first. They will also try to optimize the site for on-page factors. Once this is done, the company will form a goal-oriented strategy.
The charge that you pay to these firms is not only for the work but also for the expertise they employ to make your digital marketing strategy better, thereby saving important SEO cost for the business.
What Affects The Cost Of SEO?
Aside from the usual differences in company rates, SEO pricing packages can be influenced by a variety of factors. These factors play a major role in deciding what SEO services will cost for your business.
Some industries are more likely than others to market online, making them more competitive. Lawyers, medical offices, finance companies, locksmiths, and car mechanics are all among the most expensive keywords on Google.
Real estate, marketing services, software companies, and home improvement businesses are among the other industries with expensive and highly competitive keywords. The CPC (cost per click) for these highly competitive keywords can exceed $1,000 in some cases!
Niche businesses typically have an advantage in this area because they can use longer keyword phrases or additional keywords with lower competition. SEO services pricing for various industries is largely determined by the number of monthly searches in that industry.
For example, a company that receives thousands of searches for their services each month will need to spend more on SEO packages; similarly, companies that serve an area with many similar businesses will need to spend more to outrank others.
Everything from the population of a city to the area you are targeting will have an impact on SEO pricing. Individual factors can also have an impact. Air conditioner services, for example, would be more competitive in Florida than in Alaska or Switzerland.
Of course, more densely populated areas will face more competition. Local SEO packages in New York City, Los Angeles, and Chicago will be far more expensive than for businesses that only want to target customers in small nearby towns.
Type of Service
SEO pricing is frequently determined by whether you want to optimize your site for organic search, build a review profile, create a large amount of content, and so on.
This can help you decide which type of SEO service and pricing structure is best for your company. For example, if you only require assistance with setting up Google My Business accounts and optimizing site tags, this can be a one-time fee per project.
However, monthly services may be a better option if you need to build a robust blog and want to rank higher on the SERPs.
Present Brand Awareness and Visibility
SEO pricing can also vary depending on your brand’s current awareness and visibility level. There will be a lot of legwork to be done if you are a brand-new company starting from scratch. If your company has been around for a while and already has a strong search presence, you will need to focus more on optimization and maintenance.
Size of Company
The size of your company can also affect SEO service cost. Firms could charge way more to a large company than they would do to a smaller organization for the same service.
What Are You Going To Spend Your Money On In SEO?
Because there are so many different elements to consider, SEO is a daunting task. Think again if you think it is just a matter of throwing some keywords around! Although there is no need for small businesses to spend a fortune on SEO, you will need to invest time and money to ensure that all aspects of the strategy are covered.
The first step in developing an SEO strategy is to consider who you want to target. The content you provide must be relevant and useful to your audience, as well as simple to find via search engines. Knowing your audience is critical, so gather feedback during the background research phase to find out what your users want from your site.
You will also need to conduct industry research to identify current trends and stay ahead of the competition. While some of this research can be done in-house, small businesses will find it time-consuming but SEO professionals can assist with this, as well as other aspects of the process.
SEO also necessitates a significant amount of time spent on keyword research. It is critical that your site contains the appropriate keywords; otherwise, it will not appear in Google searches, and you will lose valuable traffic. Keyword research entails considering how potential customers might search for your company.
It is also critical to identify direct competitors and research which keywords drive traffic to their websites. You can do this for free with Google’s Keyword Planner, but for more in-depth research, you will need a paid tool like Ahrefs. Paying for tools can quickly add up, so it is better to hire a SaaS SEO agency to handle everything in one package.
Optimization of the Site Architecture
The next step is to apply what you have learned to improve the structure of your website. In addition to being SEO-friendly, it must provide visitors with a positive user experience, with no broken links or slow-loading images.
If you are comfortable with coding, you could do it yourself, but most business owners find that SEO professionals are required. They will be aware of all the tricks, such as reducing the number of clicks from the home page, utilizing internal links, and keeping URLs short.
Content Creation and Optimization
To satisfy those Google algorithms, your website must also have a large amount of high-quality content. Higher rankings are generated by new, unique, and updated content. You may have some great writers on your team, but keeping up with content production and optimization is a full-time job.
Along with coming up with new ideas, you must refresh existing content to ensure it contains the most popular keywords and up-to-date statistics. Again, a content marketing-focused SEO agency will include a content strategy in your package.
Link-building is the process of getting other websites to link back to your site, thereby increasing referral traffic and informing Google that your site is worthy of citation (and thus earning a higher ranking). This can be accomplished through excellent content, influencer endorsements, and partner links.
Reporting and Analytics
Maintaining Google analytics best practices is also required to stay on top of your site’s performance and competition—another aspect of SEO that requires time and effort, as well as some technical know-how. You are better off delegating this to professionals who can assist you in building valuable backlinks while adhering to Google guidelines.
What Will The Cost Of SEO Be In 2022?
The cost of SEO is determined by a variety of factors. An SEO agency will consider your existing brand awareness and visibility in organic searches, business goals, and target audience before determining a price.
Pricing is also determined by the SEO provider’s expertise as with so many other things in life, you get what you pay for. The average monthly cost for US agencies ranges from $100 to $250 per hour, or $2,500 to $30,000 per month.
Here’s a rundown of the main price points:
If you are a sole proprietor, you may decide to handle your own SEO. And it might work but only if you are willing to put in a lot of time and effort. Elements such as keyword research and content creation can be self-taught to some extent because there are numerous resources available online.
However, you may find it difficult to master the more technical aspects of analytics, link building, and site architecture optimization. DIY SEO is essentially only an option for the most cash-strapped businesses. Spend any money you have in your marketing budget on professional SEO services.
Cheap SEO Services
Small businesses may be tempted to choose the cheapest option, but buyer beware. ‘Cheap SEO’ is frequently too good to be true. SEO takes time and effort, so if an agency offers ridiculously low prices, they may be cutting corners. Prices for ‘cheap SEO’ typically range from $100 to $300 per month.
A low-cost agency will not put in the effort to create high-quality content. Creating effective blog content takes time and relationships with authority-building external sites. ‘Cheap SEO’ firms cannot devote the time or resources necessary to create blog content that drives growth.
This not only wastes your money, but it could also harm your website. Cutting corners, also known as ‘black hat SEO,’ aims to boost site rankings through deceptive methods such as hidden text, unnatural links, and keyword stuffing. Google’s algorithms are wise to this type of behavior, and they can punish you by lowering your rankings or removing your listing entirely.
This results in lost organic traffic, which can have an impact on your revenue. It is certainly not the desired outcome when you are attempting to improve your SEO.
Mid-Range SEO Services
So we know that cheap SEO is not worth the risk. Mid-range prices are safer, but you should always do your homework and check the agency’s credentials. Mid-level SEO typically focuses on resolving existing issues with a website, such as optimizing site architecture and adapting content. It is appropriate for small websites in fields with low competition.
SEO firms at the upper end of this market will offer a content marketing strategy. They will regularly create new content and update existing content. They may also provide digital PR services, such as backlink building through outreach and social amplification.
Mid-level SEO content will meet some business needs, but it will not produce long-lasting, engaging content. There are better options that will take into account the bigger picture of your company’s story if your budget allows. This type of SEO could cost anywhere between $500 – $2000 per month.
High End SEO
If you have a large budget and ambitious goals, it is worthwhile to invest in high-end SEO from a top agency. These SEO experts have the infrastructure and expertise to provide a comprehensive service throughout the process. Large ecommerce websites in highly competitive industries typically use this type of SEO.
A top-tier agency may be tasked with resolving technical SEO issues, optimizing your analytical tools, or mitigating the effects of Google penalties. Premium content from top-tier SEO agencies will be highly tailored to your target audience’s customer journey. You can expect educational resources and informational content to reduce churn and increase conversions.
Typically, you will sign up for a long-term plan that is tailored to your specific SEO objectives. High-end SEO providers are usually well-established and trustworthy, but make sure they can deliver on their promises. Such services could cost your business upwards of $3000 per month in 2022.
Enterprise SEO is a completely different animal. Enterprise SEO necessitates greater accountability, regardless of the size of the site or the size of the business. You can expect increased traffic, conversions, and stakeholder input. This high level of SEO work will cost you between $10,000 and $100,000 per month.
Managing enterprise SEO necessitates a shift in tactics, rather than simply scaling up small business SEO practices. Enterprise SEO processes, mindset, and frame of reference necessitate expertise and vision. You must select a company that develops a full-funnel strategy that produces long-term results.
That full-funnel strategy must include enterprise-level unique content, high authority digital PR, paid search, link building, and in-depth site optimization. You can drive a lot of organic traffic to your site, but only if you work with a reputable company. This is where trusted SEO vendors like PageTraffic step in.
We speak the language of enterprise SEO at PageTraffic, and we have the results to prove it.
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How Much Should You Spend Monthly On SEO Services?
Now that you understand why you need an SEO company to assist your team in digital marketing efforts, let’s talk about how it costs and how much you should pay out of pocket.
It is critical to create a smart budget that is tailored to suit the requirements of your organization. What is appropriate for one company could be disastrous for you, so put in the needs of your company while making a budget framework. It is all about your business model, current profits, and how much your services cost.
Your budget will be determined by what you can afford to make versus how much money you are putting into this. You might come across an SEO firm that is significantly undercutting all of the others’ pricing models. But do not be deceived. Discount SEO services are frequently advertised as being too good to be true.
Despite the fact that the average small business in the United States spends over $500 per month on SEO services, statistics show that companies that spend less than that amount are more likely to be dissatisfied with their results than those that spend more.
These smaller discount SEO firms frequently cut corners by employing ‘black hat SEO’ tactics or failing to devote the necessary time to your campaign. When that happens, it is as if you are throwing money away. What you consider to be cheap SEO is not good SEO.
What Do Most Businesses Pay for SEO Services?
A typical SEO cost for a medium size firm can range from $400 to $10,000 per month. Of course, this is dependent on the size of your company, the level of competition, and the level of service you select.
However, there should never be a set price for SEO services. If you see a company offering that, it should raise the alarm. Your SEO cost is determined by your specific objectives. Because each SEO campaign is unique, one-size-fits-all pricing is ineffective. Marketing a shoe store is not the same as marketing a plumber. Similarly, national SEO is very different from local SEO.
It is critical to remember that this is not a one-time expense. It is not like you can do SEO for six months, get the number one spot, and then keep it forever. SEO is a continuous process. It never ends. You climb to the top and then defend your position. Remember that you have competitors and are all vying for the top of the search engine mountain.
Does Paying for Local SEO Make Sense?
Your present level of local SEO visibility is a key element. The value of a new client or customer to your company is the other consideration. In general, SEO can produce a positive return in the short to medium term if you offer a high margin service and/or have a high average transaction. Consider the case when a new client is worth $500 to your company.
After a $1000 Local SEO optimization project, if you can drive 2 additional customers over the course of 12 months, 1 additional customer every six months, you have produced a positive ROI in your first year. For the same calculation to hold true if those same consumers are only worth $100 each, you would need 8 additional customers.
So, paying for local SEO services will hold relevance according to the type of business.
What is The ROI Of SEO?
Return on Investment, or ROI, is one of the most commonly monitored performance indicators by businesses. It is used to understand the relationship between the budget spent on a strategy and the practical results in terms of growth and awareness.
For example, if a company invests in redesigning its homepage to improve user experience and sees an increase in conversions, this is a positive return. If it spent more than it received, the investment was not as successful. The same rule applies to SEO ROI.
It is the relationship between how much you spend on SEO strategies and tools and the results you get.
When implemented correctly, an SEO strategy can increase organic traffic, get more content ranked at the top of search results pages, and increase session times and engagement for each new user. All of these metrics are measurable, but the real challenge is quantifying them in monetary terms.
You can accurately calculate the ROI of SEO by asking the right questions, like:
- What is the value of a new visitor?
- In terms of monetary return, what does having a page at the top of a search mean?
How to Calculate SEO Return on Investment
Calculating the return on investment of SEO will allow you to explain the benefits of your strategies to senior management and other stakeholders. Here’s how you can calculate SEO ROI in few easy steps:
Establish conversion tracking
Setting up conversion tracking in Google Analytics is the first step in calculating your ROI from SEO. This allows you to track all revenue-generating conversions on your website. The setup you use is determined by whether or not you sell directly from your website.
Ecommerce tracking allows e-commerce stores to extract data from their online transactions and calculate their exact online revenue. This means that the information for online returns is extremely precise.
Lead-generating businesses, such as service providers, can set conversion goals, such as lead form submissions, and assign dollar values to those goals based on customer data.
Compared to the competition
Sometimes the best way to persuade yourself or your managers that investing in something like SEO is a good idea is to talk about it in terms of dollars and profits. But there are times when you need to recognise that your competition is already doing what you are thinking about and seeing success.
At this point, any company with a website that is not investing in SEO is falling behind the competition. So, when it comes to inbound marketing, marketers say SEO is their top priority. According to Forbes, over $80 billion is spent on SEO in the United States alone each year, and that figure is rising all the time.
So, obviously, if you want to compete with your competitors who are occupying SERP space, you must be able and willing to play the same game as they are.
Determine your SEO ROI
Once you’ve determined how much revenue your SEO strategy generated during a specific time period (usually a month or a quarter), you can compare that figure to your SEO investment during that time period to calculate your ROI.
To calculate the ROI of SEO, most businesses use the following formula:
(Gain from Investment – Investment Cost) / Investment Cost
If your company already has a method for measuring the ROI of other marketing channels, you can apply the same formula to SEO.
Some businesses, for example, calculate ROI based on the net profit from each sale rather than the total revenue. Use the same values for your SEO strategy or else your comparison will be skewed.
If you do not already have a method for calculating marketing ROI, the basic Investopedia formula (Gain from Investment – Cost of Investment) / Cost of Investment can be used. Then, multiply the result by 100 to get your ROI in percentage terms.
If you want your site to be number one, you will need a super strategy, and you will have to pay a lot of money for it. Do not be swayed by low-cost offers, and be wary of ‘black hat’ techniques that could harm your visibility. While some SEO elements can be done on your own, this is not a long-term strategy. To make SEO work for you, it is best to delegate authority and responsibility to get the best results.
Frequently Asked Questions
How much does SEO cost?
The cost of SEO varies greatly depending on the SEO services you require or desire. SEO package pricing varies depending on a variety of factors, including the amount of content required, expectations, business growth projections, and the range of services required. When you get quotes for SEO pricing from marketing agencies, you should have a good idea of what to expect so you do not overpay.
How much does an SEO consultant charge?
Like any other service, the cost of SEO consultancy varies by large across the US and the rest of the world. Typically, an SEO consultant charges anywhere between $50 – $200 per hour, depending on the project. Charges could also be based on a project basis.
How much is SEO for a small business?
Small business SEO cost depends on a lot of factors like location, requirements, website structure, etc. However, the price defining factor majorly is what you expect out of the SEO service. Generally, SEO services for small businesses cost between $500 – $2,500 per month.