How Much Should You Spend On SEO?
How Much Does SEO Cost?
Determining what to spend on SEO is directly related to what is required to achieve the desired results. SEO pricing should involve a combination of on-page changes to your site, relevant link building, and a bookmarking referral service/system tailored; so that you start generating referral links from important social bookmarking sites like Digg, REDDIT, delicious or Stumbleupon immediately.
Establish your return on investment or conversion rate
The goal is to establish a system that allows you to calculate a conversion rate (sales per number of clicks). Many of our clients start off in the $200-$400 /month for the first 3-5 months. This allows us to make changes, add content to the website and initiate the link building process in a way that appears natural. Google and other search engines red-flag websites that establish backlinks to other sites too quickly. We normally establish a basic conversion rate by the third month, which helps the client justify further increases in spending.
Get the numbers before spending
Companies do not (or should not) spend significant funds until their SEO or marketing firm can assist them in calculating a conversion rate (website traffic to sales). All analytics should be included.
Choose an SEO company with experience in your industry
There are some additional factors to consider: Pay Per Click (PPC) and Content Network Advertising requires a SEO consultant with a firm understanding of the clients industry. Typically there is a cost to run the campaign with the “per click costs” drawing from the clients account. Be wary of SEO companies with little experience in your industry that ask for a flat fee (that combines their service fee and the cost of the clicks into one or two payments). Precise data regarding the traffic you are receiving, and having already submitted payment decrease the likelihood of recourse.
Pay for results (aka performance)
Reputable companies will offer a “Pay for Performance” plan like ours. This allows you to pay a pre-established fee when the desired results are achieved. This can take up to six months, costs more, and is really designed for clients who have an established “traffic-to-sale conversion rate” and can see a tangible return on an increased investment. We calculate exactly what it will cost to get your desired page ranked in the top 3 for your ideal keywords.
This is the very condensed answer, as there is much more that business owners should be aware of before signing on the dotted line with any professional SEO company. For more information, contact us for a FREE consultation