Ok, so whether you are new to the world of SEO or just getting started, in this post I am going to try and answer questions about pricing and value so that you can get the information you need in order to make a well-informed decision about SEO and business.

My goal is not just to focus on what SEO is, but rather how it ties to your business goals, marketing, sales, and the potential value it offers.

That being said, I am also going to answer the question: “How much should a small business spend on SEO per month?” or “How much does SEO cost for a small business?” To help with budget, pricing, and expectations.

Understanding SEO Pricing Models

Before diving into costs, it’s essential to understand the different SEO pricing models. The most common ones include:

1. Hourly Consultation: This model is based on an hourly rate. If you’re asking, “how much should a small business spend on SEO per hour?”, it typically ranges from $50 to $300 per hour, depending on the consultant’s expertise and the complexity of your website.
2. Project-Based: In this model, you pay a flat fee for a specific project. For instance, if you want an SEO audit for your website, you’ll pay a one-time fee.
3. Retainer-Based: Here, you pay a monthly fee for ongoing SEO services. This model is ideal if you’re looking for long-term SEO strategies.
4. Performance-Based: Under this model, you pay for results. If the SEO expert achieves the agreed-upon results, you pay them a predetermined amount.

Keep in mind that SEO requires consistent monthly work to maintain results and grow. For two primary reasons. First, because Google is constantly changing. Second, because there is competition continuing to rank requires consistent work.

How Much Should A Small Business Spend on SEO Per Month?

The answer to “how much should a small business spend on SEO per month?” varies widely based on several factors such as your business size, industry, competition level, and specific SEO goals. However, on average, small businesses can expect to spend between $500 and $2000 per month. Small Business SEO, is not the way to look at SEO. Rather you should look at local search vs. national search, when thinking about costs SEO, other marketing options, and budgets.

Investing in SEO is essential for small businesses aiming to increase their online visibility and attract more customers. According to various sources, the average monthly cost of SEO services for small businesses ranges from as low as $500 to as high as $5,000. Some businesses may even spend up to $10,000 per month on SEO, while others could pay as little as $100 per month. On an hourly basis, SEO services typically cost between $100-$300. Expectations for what you should pay for when it comes to small business SEO is tied back to your goals, timeline, and budget.

Industry standards suggest that businesses should allocate 5% to 10% of their revenue on SEO. However, investing more can accelerate growth and competitiveness. The value provided by SEO can be immense, from improved website ranking and increased traffic to enhanced brand credibility and customer trust.

Here is a brief list highlighting the importance of SEO for small businesses:

• Improve website visibility and ranking on search engines
• Increase website traffic and potential customer base
• Enhance brand credibility and customer trust
• Outperform competitors in online space
• Better return on investment compared to traditional marketing

While the cost of SEO services can vary widely, it’s clear that the benefits of investing in SEO can greatly outweigh the costs, especially for small businesses looking to grow and establish their presence in the digital marketplace.

When thinking about hiring an agency for SEO services, consider asking for a SEO case study of past work. Often companies ask for this to gauge the agency’s experience with SEO campaigns.

SEO Cost Calculator: A Handy Tool

An SEO cost calculator can be a helpful tool in determining your SEO budget. You can get an estimated SEO cost by inputting factors like your website’s current status, desired keywords, and competition level. Note that while this tool provides a ballpark figure, actual costs may vary. Calculators can be great, but cost is not the only variable when it comes to choosing an SEO agency or Freelancer to partner with.

Is SEO Expensive?

The truth is, SEO can seem expensive, especially for small businesses with limited marketing budgets. However, it’s important to view SEO not as a cost, but as an investment. Effective SEO can significantly increase your online visibility, drive more traffic to your website, and ultimately lead to increased sales and revenue. So, despite the initial outlay, SEO can offer a substantial return on investment.

SEO, or Search Engine Optimization, is often perceived as expensive, but it’s important to reframe this understanding. The cost of SEO can range widely, from $1,000 to over $10,000 per month, depending on the size and complexity of the project. However, when considering the potential return on investment (ROI), the price tag becomes more justifiable.

Unlike paid Google advertising, SEO is about investing in your website’s organic ranking on search engine results pages (SERPs). It’s not about paying for ad space. Instead, it’s about creating valid, high-quality content that aligns with Google’s algorithms and provides real value to your audience. This makes SEO an investment into the long-term growth and visibility of your business, particularly for entrepreneurs, SaaS businesses, and ecommerce platforms.

In fact, research shows that SEO leads have a significantly higher close rate than outbound leads, such as those from direct mail or print advertising. This suggests that an effective SEO campaign can yield a better ROI than other forms of marketing.

While the upfront costs may seem high, hiring an SEO company to manage your campaign can save you time and effort. They will conduct the necessary research, keep up-to-date with changes in Google’s algorithm, and implement strategies that drive results. So, while the quote for SEO services might initially cause sticker shock, consider the potential returns and the value of having experts handle your SEO needs.

Keep in mind that while SEO isn’t an overnight solution, it is a long-term strategy. The benefits of a well-executed SEO strategy grow over time, making it a worthwhile investment for any business looking to boost their online presence and achieve sustainable growth.

SEO Agency vs. Freelance. What is the Difference?

The difference between hiring an SEO agency and a freelancer can be likened to the distinction between partnering with a company versus hiring an individual employee. An SEO agency is typically comprised of a team of professionals, each bringing a unique skill set to the table. They offer a wide array of services, from technical optimization to content creation, and have the capacity to handle multiple clients and large projects simultaneously. On the other hand, a freelancer is a solo professional who may specialize in a particular aspect of SEO. They can provide more personalized attention but may lack the diverse expertise found in an agency.

When you hire a freelancer, it’s akin to bringing on a new employee. You’ll need to have processes in place for managing them, and this can require significant time and effort. An agency, conversely, usually comes with its own management and workflow systems, thereby reducing your direct oversight responsibilities.

Pros and Cons:

Freelancer

Pros:

• More personal attention, potentially lower costs, flexible schedules.
• Plugs into an internal team easily.

Cons:

• Limited to their specific skills, managing them requires time and effort, may not handle large projects effectively. Availability might be limited due to other clients.
• Work completed slowly due to them being only one person rather than a team.

SEO Agency

Pros:

• A broad range of skills can handle multiple projects and clients, less direct management is required.
• You are hiring a team for about the cost of one guy.
• Work can be completed at a faster rate due to more available resources.

Cons:

• Potentially higher costs, and possibly less personal attention due to multiple people being on a project.

In conclusion, the decision between a freelancer and an SEO agency largely depends on your business’s specific needs, budget, and the amount of involvement you desire in the SEO process.

SEO Freelancer Price vs. Agency Price

When considering “how much does search engine optimization cost,” it’s crucial to consider who will be doing the work. An SEO freelancer’s price might be lower than an agency, but they may also have fewer resources at their disposal.

The pricing for SEO services can significantly vary between freelancers and agencies, largely due to the differences in their operating structures and resources. According to sources including Backlinko, Ahrefs, and BrightLocal, the average monthly cost for SEO services from a freelancer or marketing agency is roughly $497/month. On an hourly basis, both SEO agencies and freelancers commonly charge between $75–$100 per hour, with some experienced SEO consultants charging up to $150 per hour. However, it’s worth noting that agencies typically charge higher rates, averaging around $147.93 per hour, compared to freelancers who can often offer the same services at lower rates.

In terms of efficiency and speed, agencies have the advantage of a larger team and a wider range of skills, which can result in quicker turnarounds and the ability to handle multiple projects simultaneously. Freelancers, on the other hand, may provide more personalized attention and flexibility, but the speed and efficiency of their work can be influenced by their individual capacity and workload. Ultimately, the choice between a freelancer and an agency should consider not only cost but also factors such as the scope of the project, required skill set, and the level of involvement desired in the SEO process.

Average Marketing Spend For a Business

Determining the average marketing spend for a business can depend on several factors including the size of the business, its industry, and its revenue. According to Deloitte’s Annual CMO Survey, marketing will make up roughly 13.6% of a company’s total budget in 2023¹. The US Small Business Administration suggests that businesses with less than $5 million in annual revenue should spend between 7-8% of gross revenue on marketing². It’s also noted that marketing budgets can vary drastically by industry, ranging from 1% to an astounding 50% of revenue.

SEO should undeniably be a part of this marketing spend. As an integral aspect of digital marketing, SEO is a cost-effective strategy that yields long-term results. Unlike some marketing strategies that require constant funding to keep driving traffic, SEO is an evergreen source of traffic. Once your website ranks well in search results, it can continue attracting visitors without additional investment. This doesn’t mean you can set it and forget it; SEO requires ongoing work to maintain and improve rankings, especially considering the regular updates to search engine algorithms.

Investing in SEO provides the dual benefit of improving visibility in organic search results and enhancing the user experience on your website. Both of these contribute to driving more high-quality traffic to your site, generating leads, and ultimately increasing sales. In fact, SEO leads have a 14.6% close rate, compared to only 1.7% for outbound leads. Therefore, SEO should not be viewed as a mere marketing expenditure, but rather as an investment that delivers significant returns over time. Businesses spending budget on SEO tend to do better than those that don’t because it creates an entire funnel for inbound leads.

What Does SEO Cost For Small, Medium, and Large Companies?

When it comes to SEO costs, the size of a company and its specific needs can greatly influence the price. Small businesses, for instance, should expect to pay around $500 to $5,000 per month, with some spending as little as $100 or as much as $10,000 depending on the complexity of their SEO needs. The average cost for these smaller companies, according to sources, hovers between $2,500 to $5,000 monthly.

Medium-sized businesses can anticipate a slightly higher range, with most paying between $2,500 to $7,500 per month for SEO services. Large companies, on the other hand, may spend an average of $1,500-$5,000 per month, with some larger, enterprise-level companies investing millions of dollars annually.

Regardless of size, companies should allocate about 25% of their paid media budget to SEO spend. SEO establishments that provide these services typically offer various pricing models, including hourly rates, project-based fees, and monthly retainers. The average hourly rate for SEO services is reported to be $100-$149. Whether it’s content creation, website design, or technical SEO, businesses must consider these factors when determining their SEO budget.

Freelancers, who might charge lower rates, are another option for companies looking to save on costs. Ultimately, investing in quality SEO services can lead to improved organic search rankings, making it a worthwhile expense for businesses of all sizes.

I hope this helps answer questions about SEO cost.

What Should Small Businesses Be Spending On SEO?

For small businesses looking to improve their online visibility, understanding the cost of SEO is crucial. In my experience, companies should be prepared to pay an average cost of $500 to $5,000 per month for SEO services, although this can vary depending on factors such as the complexity of the website and the competitiveness of the industry. The SEO spend should ideally account for about 25% of a company’s paid media budget. SEO establishments that provide these services typically offer various pricing models, including hourly rates, project-based fees, and monthly retainers.

Freelancers, who might charge lower rates, are another option for small businesses. However, businesses should note that investing in quality SEO services can lead to improved organic search rankings, making it a worthwhile expense. Whether it’s content creation, website design, or technical SEO, businesses must consider these factors when determining their SEO budget.

What is Organic Search aka SEO?

Organic Search, commonly known as Search Engine Optimization (SEO), is a method of increasing a website’s visibility on search engine results pages (SERPs) through unpaid, algorithm-driven results. Unlike Pay-Per-Click (PPC) advertising, where businesses pay for their sites to appear at the top of search results, organic search focuses on using optimization techniques to naturally rank higher in search listings. A key component of organic search is content. High-quality, relevant content that provides value to users is favored by search engines like Google. This is because Google’s primary goal is to provide the best possible answers to its users’ queries. Therefore, websites that regularly update their content and ensure it’s informative, engaging, and answers common user queries have a better chance of ranking high in organic search results. In essence, SEO is about understanding what users are searching for and providing content that meets those needs, thereby improving your site’s visibility and traffic without the need for paid advertising.

Google Algorithm and what it means for SEO

Google’s algorithm is a complex system used to retrieve data from its search index and deliver the most relevant results for a query. The algorithm is designed to understand and rank pages, making SEO a science that requires understanding these algorithms and optimizing websites accordingly. Key to this are core updates, which Google regularly rolls out to improve the relevance and quality of search results. These updates can significantly impact website rankings, making it essential for SEO professionals to stay updated and adjust their strategies as needed.

The Google algorithm uses “crawlers,” also known as spiders or bots, to visit web pages, understand their content, and index them. SEO involves ensuring that these crawlers can easily access and understand your site’s content to improve its visibility in search results.

In the world of SEO, there are two main approaches: black hat and white hat. Black hat practices involve tactics that attempt to trick or manipulate Google’s algorithm, such as keyword stuffing, cloaking, or using private link networks. While these might provide short-term gains, they’re generally frowned upon and can lead to penalties from Google. On the other hand, white hat practices follow Google’s guidelines and focus on providing value to users. This involves creating high-quality content, optimizing site speed and mobile-friendliness, and building natural backlinks. Understanding and navigating Google’s algorithm is a critical part of effective SEO, requiring a scientific approach that combines analysis, experimentation, and adaptation.

SEO Services – What to expect

When engaging SEO services, there are several standards that you can typically expect. Initially, an SEO agency should invest time in understanding your business goals and carrying out thorough research and site audits¹. This involves analyzing your website’s current SEO performance, identifying areas for improvement, and exploring potential opportunities.

Keyword analysis is often the first step in an SEO campaign. This process involves identifying the keywords that your target audience uses when searching for products or services similar to yours. These keywords are then incorporated into your website’s content to improve its visibility in search engine results.

Another crucial aspect of SEO services is the technical on-page audit. This involves checking your website’s structure, speed, mobile friendliness, and other technical factors that affect SEO. Your SEO agency should also conduct a content audit to assess the quality and effectiveness of your website’s content.

The strategy behind an SEO campaign is multifaceted. It generally involves improving the quality and relevance of your website’s content, optimizing your website’s structure and technical aspects, and building high-quality backlinks from reputable sources. Regular monitoring and reporting are also essential to measure the effectiveness of the SEO campaign and make necessary adjustments.

SEO agencies should also provide transparency with their strategies, allowing clients to approve content strategies and review drafts. The cost of effective SEO programs can range anywhere from $1,200 monthly for entry-level services to $5,600 for more premium services. Keep in mind that good SEO is an ongoing process, requiring regular updates and optimizations to maintain and improve search engine rankings.

Custom SEO Services For Companies

Custom SEO services are an integral part of any company’s digital marketing strategy, particularly in today’s increasingly competitive online landscape. As the name suggests, custom SEO services are tailored to meet the unique needs and objectives of each company. This personalized approach ensures that each SEO campaign is designed to target a company’s specific audience, enhance its online presence, and ultimately drive more traffic to its website.

One of the key elements of custom SEO services is a unique strategy development process. SEO providers leverage AI and other advanced technologies to conduct in-depth research, analyze data, and devise strategies that align with a company’s goals. For instance, an e-commerce business might want to focus on improving product page rankings, while a news site might prioritize increasing visibility for its latest articles. The strategy would be different for a local business, where local SEO would be emphasized to attract customers within a specific geographic area.

Local SEO is particularly important for small businesses and companies with brick-and-mortar stores. By optimizing for local search, these companies can improve their visibility among potential customers in their vicinity. This involves using location-specific keywords, optimizing Google My Business profiles, and generating positive online reviews.

E-commerce businesses, on the other hand, can benefit from domain-specific SEO strategies. This could involve optimizing product descriptions, implementing schema markup, and improving site navigation to enhance user experience.

Regardless of the industry or size of the company, custom SEO services take into account all aspects of a business, from the number of employees to the types of products or services offered. By doing so, SEO providers can deliver personalized strategies that not only boost a company’s search engine rankings but also enhance its overall digital marketing performance.

In conclusion, custom SEO services offer companies a tailored approach to improving their online visibility and achieving their business goals. Whether you’re a local business, an e-commerce platform, or a large enterprise, partnering with a reputable SEO provider can help you devise and implement a custom SEO strategy that delivers measurable results.

What Does SEO Actually Provide?

Search engine optimization (SEO) has become an essential tool for increasing online visibility. SEO focuses on optimizing your website so it appears higher in search engine results from pages when users type in relevant keywords. Although the benefits of SEO are clear, many small business owners ask: How much should a small business spend on SEO?

The main purpose of SEO is to generate revenue, by increasing brand awareness, building trust, securing market share, and also becoming an authority in your industry. SEO’s main purpose though is directly tied to your real business issues, needs, and goals.

One of the main points of value that SEO provides, is an flow of inbound marketing to your brand. People are looking for information, and services that you offer.

Is SEO actually worth the Investment?

SEO, or Search Engine Optimization, is undoubtedly a worthy investment for businesses in 2023 and beyond. It’s a vital component of a comprehensive digital marketing strategy, allowing businesses to increase their online visibility, attract more organic traffic, and ultimately drive more sales. With around 93% of online experiences beginning with a search engine, it’s clear that SEO holds a significant position in the customer journey.

The value chain of SEO connects directly to sales. By optimizing your website for search engines, you’re improving its visibility in organic search results. This increased visibility attracts more visitors to your site. With effective on-page SEO strategies, like engaging content and clear calls to action, these visitors can be converted into leads. And with an efficient sales process, these leads can then be converted into customers.

Here are some key values provided by SEO:

• Increased online visibility
• Higher organic traffic
• More qualified leads
• Improved conversion rates
• Enhanced brand credibility
• Better customer insights through SEO data

When compared to other marketing options, such as pay-per-click (PPC) advertising or social media marketing, SEO offers a higher return on investment over the long term. While PPC can deliver immediate results, the cost per click can add up quickly and exceed your budget. On the other hand, the results from SEO are not immediate but are sustainable and grow over time.

In terms of inbound vs. outbound marketing, SEO is a crucial part of inbound marketing strategy. Unlike outbound marketing, which involves reaching out to potential customers directly (through cold calling, direct mail, etc.), inbound marketing focuses on attracting customers to your business organically. SEO does this by making your website more attractive to search engines, thereby increasing your chances of appearing in potential customers’ search results. As a result, SEO helps attract users who are actively searching for the products or services you offer, leading to higher quality leads and conversions³.

In conclusion, SEO is not just a cost; it’s an investment that can yield significant returns in the long run. As long as search engines exist and people use them to find products, services, and information, SEO will continue to be a necessary and worthwhile investment for businesses.

SEO and Content Marketing

Content Marketing

Content marketing is a strategic approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience. The primary goal of content marketing is to drive profitable customer action.

In content marketing, content is more than just words on a page. Content includes various forms of multimedia such as videos, infographics, webinars, podcasts, and more. Each piece of content is part of a broader content strategy designed to engage your target audience and guide them through the buyer’s journey.

Content marketing works by providing your audience with the information they need when they need it, helping to build trust and credibility for your brand. This approach can significantly increase inbound traffic to your website. Inbound traffic refers to visitors who come to your website organically, without being directed through paid advertising.

This inbound traffic is often more valuable than outbound traffic because these visitors are actively seeking the information or products your company provides. As a result, they are more likely to become inbound leads, or potential customers who have expressed an interest in your product or service.

On the other hand, outbound traffic and leads typically come from traditional advertising methods like TV commercials or billboards. These methods can be expensive and often reach people who are not interested in your product or service.

Content marketing is a cost-effective way to attract inbound traffic and leads. By providing high-quality content that answers your audience’s questions, solves their problems, or simply entertains them, you can build a strong relationship with potential customers and encourage them to choose your company when they’re ready to make a purchase.

SEO: The Key Pillar To Content Marketing

SEO is undeniably a key pillar of content marketing, acting as the bridge that connects valuable content to its intended audience. It’s not enough to just create high-quality content; it must also be discoverable by those who are actively seeking such information. This is where SEO comes into play. By researching and integrating relevant keywords, optimizing meta tags, and creating a user-friendly website structure, SEO helps improve the visibility of your content on search engines. This increases the chances of attracting organic, targeted traffic – the kind of audience most likely to engage with your content and convert into customers. Moreover, SEO enhances the overall user experience, making it easier for visitors to navigate your site, find the information they need, and take desired actions. Thus, SEO and content marketing work hand in hand, each amplifying the effectiveness of the other, leading to a robust and successful digital marketing strategy.

Invest vs. Expense – SEO vs. Short-Term Marketing

When evaluating the cost of SEO for a small business, it’s important to consider it as an investment rather than an expense. A successful SEO campaign can generate more leads and sales through increased online visibility, organic search traffic, and higher conversion rates. Ultimately, this could result in a greater return on your marketing budget and produce substantial financial benefits for your organization.

Factors That Influence Small Business SEO Costs

The cost of SEO for a small business can vary greatly based on several factors such as the size and complexity of your website, competition in your industry, and the specific goals you hope to achieve. Ultimately, the cost of SEO for a small business will depend on which service and amount of work are required to achieve your goals.

Determining how much a small business should spend on SEO involves considering several factors, including your business goals, budget, and the complexity of your website. Remember, while SEO requires a financial commitment, the potential returns make it a worthwhile investment.

Wrapping It Up

So if you still asking, should I pay for SEO? Well to be honest the answer really depends on yours and the business goals. All marketing should be tied to the company’s value chain. Just like any other marketing, SEO is a long-term game. So come prepared to invest both time and money. There are no quick fixes in marketing. If you’ve made it this far, thanks for staying with me during this really long post. There was just a lot of ground to cover.