Most us know by now that search engine optimisation (SEO) is a vital part of rankings and conversions, but how do you know if you are paying too much for this service? Or for any service in fact?
As a business owner you need to keep a tight hold on your budget, and paying for SEO and social media services can sometimes take a back seat to other demands. This is particularly true when you really don’t know whether these services are worth the investment.
How to cost an SEO service
There’s a very simple way to decide whether or not a particular service is going to be cost effective for your business. This doesn’t just apply to marketing and SEO, but any service you outsource from your business. You need to determine:
- How much the service is going to cost you over say, the next six or twelve months.
- How much each individual client is worth to your business over their lifetime.
- How many new clients you will have to obtain through the service to make it financially viable.
As an example, let’s say you’re considering a new service at $500 per month for the next six months. That equals $3000 which you need to find to pay for this service. You know that your average client is worth approximately $1000 to you, so this means that you only need to find three new clients in the next six months to pay for this service.
Now there are two points here. Firstly, does the service provider have data to show that they can achieve these results, especially in your industry? Secondly, will the service you are considering consume much of your time? That may be something else to factor into the equation. Being hands-off can sometimes have benefits in productivity but may also mean you’re not always up to speed with what’s going on, so it’s important that the provider is flexible.
Getting back to SEO specifically, we typically increase conversions/sales several fold within the first few months of a new service. This means that an SEO service, properly managed by a local provider, can really provide a strong return on investment without much effort on your part.