SEO Cost Calculator: How Much Should You Budget For SEO Services? (2024)

Digital is the primary marketing channel for many companies.

Many owners and executives still have difficulty budgeting for online marketing.

Budgeting for SEO can be complex and influenced by factors like project scope, industry competition, and specific services needed. There is no universal calculator for calculating costs.

This article explores key SEO pricing components and how to calculate and plan your budget.

What Businesses Don’t Understand About Investing In SEO

SEO is an area where you truly get what you pay for. Investing adequately in SEO services can significantly impact your online presence and business growth.

According to recent data, over half of all SEO professionals work with monthly budgets ranging from $500 to $5,000, with 28.6% reporting budgets in the $1,001-$5,000 range.

SEO Cost Calculator: How Much Should You Budget For SEO Services? (1)Image from Search Engine Journal, May 2024

Many business owners are reluctant to invest in SEO, often because they lack understanding of how search marketing works and are too busy running their businesses to learn about SEO.

Most industries follow a standardized, step-by-step process to achieve specific outcomes.

Many business owners mistakenly assume SEO works the same way, treating it as a commodity.

This misconception leads them to fall for low-cost offers like $99/month “guaranteed page one” services from spammers and scammers, which never deliver meaningful results.

The Cost Of Cheap SEO

I belong to several internet marketing groups on Facebook. It’s truly frightening the number of noobs posing as SEO professionals and taking on clients.

It’s common to see a question like: “I just landed a client that wants to rank for [keyword x] – how do I do it?”

A close second is people using link schemes, specifically private blog networks and third-party pages known as parasite SEO, without ever explaining the risk to clients. Many use AI to generate content at a scale without fact-checking.

However, AI can be a powerful tool when used ethically in SEO.

AI helps automate data analysis, identify patterns, and streamline content creation and optimization, which in turn helps to reduce SEO costs.

If business owners were just throwing money away by hiring an incompetent SEO, that would be bad enough. Unfortunately, the collateral damage from “cheap SEO” can go much deeper.

It can draw a Google penalty and virtually wipe out a website’s visibility on the web.

Business owners must remember that they’re ultimately responsible for any SEO work performed on their site. They should discuss the specific tactics service providers use before entering into an agreement.

Managing Your Resources

With Google utilizing 200+ (and likely exponentially more) ranking factors, it’s easy to become intimidated and paralyzed.

The good news is that if you focus on just three factors, you can still crush it, regardless of your niche.

Here’s what you need to pay attention to:

1. Information Architecture

Your site should:

  • Be crawlable & accessible to search engines.
  • Follow Google Webmaster Guidelines for SEO best practices.
  • Be optimized for a high-quality user experience (paying careful attention to Core Web Vitals).
  • Render cleanly on mobile, tablet & desktop devices.

2. Content

Your site’s content should conform to best practices as disclosed in the Search Quality Ratings Guidelines with an emphasis on:

  • Being unique and offering value.
  • Matching search queries.
  • Satisfying user intent.
  • Being of high quality.
  • Satisfying the fresh content algorithm.

3. Backlinks

  • It must be natural. Avoid popular link schemes like private blog networks (PBNs) and paid guest posts. Instead, focus on building real links from topically relevant websites with high-quality content.
  • Quality is key: A lower number of high trust/high authority/relevant links can outperform a large quantity of lower quality links.

You Manage What You Measure – Set Goals

Before establishing a budget, one must define specific goals for a campaign.

Your goals should include measurable results, a defined timeframe, and an actual measurement for success.

At one time, success was measured solely by keyword rankings. While SERPs remain an important metric, they are not the most important.

I would argue that the most important metrics are those that directly impact the bottom line. Organic sessions, goal conversions, and revenue fall into that category.

Goal setting could include improving organic sessions by X%, increasing conversions by Y per month, and/or increasing revenues by Z%.

When setting goals, it’s important to keep a couple of things in mind.

First, they need to be achievable. Stretch goals are fine, but pie-in-the-sky benchmarks can actually work as a disincentive.

Equally important: you need to give the campaign time to work.

According to Google,

“…in most cases, SEOs need four months to a year to help your business first implement improvements and then see potential benefit.”

Developing A Budget

Your goals will determine what tactics are needed for success. This, in turn, sets up a framework for developing an action plan and the budget necessary to support that plan.

This brings us full circle to positioning and paying attention to those factors that move the dial.

  • How does your information architecture stack up against competitors?
  • How does your content strategy fare as compared to the competition?
  • How does your backlink profile stack up against the top-ranked websites?

The answers to those questions will determine priorities as well as the volume of work needed to reach your goals.

In many cases, the actual work performed will be the same, regardless of budget level. The difference is the volume of work performed.

If you add twice the content and twice the links at budget level “B” compared to budget level “A,” you are more likely to achieve earlier success at the higher budget.

That said, the right budget is one you can afford, without losing sleep, for a minimum of 6 and ideally 12 months.

It takes time to properly plan, implement, and tweak a campaign to evaluate its success.

Also, remember that the lower the budget, the longer the journey.

How Much Can You Expect To Spend On SEO?

To execute a local campaign, you could budget between $1,001 and $5,000 per month, the most common budget range among SEO professionals SEJ surveyed in 2023.

The budget will likely be higher for a national or international campaign, with many SEO pros working with budgets exceeding $10,000 per month for broader campaigns.

Some firms offer a “trial package” at a lower price with no contract. This allows prospective clients to test their services while minimizing risk.

There are some options if you can’t afford to retain a top-level SEO pro. The most common is a one-time website SEO audit with actionable recommendations.

Just fixing your website will often lead to a meaningful boost in organic traffic. Content development and keyword analysis are other areas where you can get help from a pro for a one-time fixed rate.

Another option is to become an expert and do it yourself.

SEO Cost Calculator – Measuring Organic Search (SEO) ROI

The following is a calculator commonly used for (incorrectly) measuring return on investment for SEO.

Organic Search ROI Calculation Assuming “One Shots”

Example: selling blue widgets
Number of new customers acquired via organic search in a given month10
Average net income (profit) per order$100
Total profits from new organic search customers in a given month$1,000
Monthly marketing budget (expense)$2,500
Monthly profits from new customers ($1,000) divided by monthly organic marketing spend ($2,500)ROI = -60%

The flaw in the above calculator is that it fails to take into consideration the lifetime value of a new customer.

Online retailers need repeat business to grow. By not calculating the lifetime value of a new customer, the true ROI is grossly understated.

The right way to calculate ROI is to build lifetime value into the calculator.

To calculate the cost of SEO and its true ROI use this formula:

Average lifetime profits from new customers acquired in one month divided by monthly organic marketing spend.

Organic Search SEO ROI Calculation Assuming Lifetime Value

Same example: selling blue widgets
Number of new customers acquired via organic search in a given month10
Average net income (profit) per order$100
Total profits from new organic search customers in a given month$1,000
Average number of orders per customer over a “lifetime”5
Total average lifetime profit$5,000
Monthly marketing budget (expense)$2,500
Average lifetime profits from new customers ($5,000) divided by monthly organic marketing spend ($2,500)ROI = 200%

As you can see, that one variable makes a huge difference in how the ROI is stated.

SEO Campaigns Are Long-Term Investments

Unlike PPC, an organic search campaign will not yield immediate results.

A comprehensive SEO campaign will involve a combination of technical SEO, content marketing, and link-building. Even when executed to perfection, it takes time for Google to recognize and reward these efforts.

That said, the traffic earned from these efforts is often the most consistent and highest-converting among all channels.

FAQ

How do SEO professionals measure success?

The top metrics used to measure SEO performance are click-through rate (CTR), keyword rankings, and branded vs. non-branded traffic.

What is the most common budget range for SEO campaigns?

The most common SEO budget range is between $1,001 and $5,000 per month, with 28.6% of respondents working within this range.

What are the primary factors that affect SEO budgeting?

Determining the appropriate budget for SEO involves considering several key components that can influence the overall cost. These factors include the scope of the SEO project, the level of competition within the industry, and the specific types of SEO services that are required. For example, a small business in a niche market with low competition might budget around $1,000 per month for local SEO services, focusing on optimizing its Google My Business profile and building local citations. In contrast, an ecommerce company targeting an audience in a highly competitive industry might need to budget $5,000 to $10,000 monthly for a comprehensive SEO strategy that includes extensive link building and technical SEO audits.

What risks are associated with choosing low-cost SEO services?

Opting for low-cost SEO services poses significant risks to a business. These services often fail to comply with ethical SEO practices, resulting in the use of tactics such as link schemes or private blog networks (PBNs), which can be detrimental to a site’s reputation and rankings. Such practices can potentially attract penalties from Google, severely compromising a site’s online visibility and trustworthiness. It is crucial for business owners to be vigilant and discerning when selecting SEO professionals to avoid these harmful consequences.

More resources:

  • 5 Reasons Why You Should Avoid Cheap SEO Packages
  • How to Do an SEO Audit: The Ultimate Checklist
  • How To Secure And Defend Your SEO Budget For Executive Buy-In
  • State Of SEO report

Featured Image: pattarawat/Shutterstock

Category SEO

SEO Cost Calculator: How Much Should You Budget For SEO Services? (2024)

FAQs

How much should you budget for SEO services? ›

Small-scale SEO pricing packages range between $1,500-$2,500 per month. Comprehensive Local SEO services can be as much as $3,000-$5,000 per month. Most businesses have budgets that range from $500/month to $10,000/month. Average hourly SEO services cost $100-$300 per hour.

How much should I pay someone for SEO? ›

How much does SEO cost? While many businesses pay between $1,500 to $5,000 per month for SEO, you could pay as little as $100 per month or upwards of $30,000, depending on several factors. SEO service pricing can vary largely depending on the size of your business, the scope of your project, and your SEO provider.

What is the cost of SEO service? ›

In India, SEO service costs vary by website type and scope. Small business SEO ranges from ₹8,500-₹25,000/month ($150-$450). Local SEO costs ₹12,500-₹45,000/month ($225-$750), while eCommerce sites pay ₹15,000-₹45,000/month ($250-$750). Prices depend on specific business needs and target audience.

How much do freelancers charge for SEO? ›

The average SEO freelancer charges between $75 and $150 per hour. Freelancers can provide customized SEO solutions based on their clients' needs. Consultant rates, on average, range from $100 to $150 per hour.

Is it worth paying for SEO services? ›

SEO is worth the investment for so many marketers typically because of these five benefits: Targeted and compounding traffic. SEO can attract the right visitors who are likely to become customers. SEO content continues to draw traffic over time, leading to steady growth.

How much is SEO for a small business? ›

In fact, small businesses spend anywhere between $100 to $5,000 per month on SEO services. But again, the average tends to be around $500 per month. As you might expect, agencies and freelancers that charge a higher monthly retainer also tend to deliver better results.

How do you charge clients for SEO services? ›

Some of the most common pricing models used are an hourly rate, a monthly retainer, a project based rate (fixed or variable), and a performance-based rate. Another factor that contributes to how much SEO can cost a small business is the quality of the services they have selected.

Is it worth hiring someone for SEO? ›

Hire SEO Experts to Rule the SERPS

Digital marketing might seem easy, but SEO is a technical aspect of online marketing with a lot of complexity. Instead of trying to DIY your own SEO strategy, it might be best to hire an SEO expert. You likely need to outsource SEO if: You've never done it before.

Why is SEO so expensive? ›

Many factors affect the cost of SEO, owing to the extensive list of tasks and optimisation techniques to handle. From keyword research to link-building and backlink creation, the number of tasks to keep track of requires a high level of expertise and time investment.

What is the minimum SEO cost? ›

Short answer: SEO can cost anywhere from $2000 to $10,000. The cost depends on how big your website is, what kind of work is required, what you want to achieve, and countless other factors. Keep reading to find out what you should be paying for your website's SEO.

How much do SEO consultants charge per hour? ›

On average, freelance SEO specialists charge between $50 to $150 per hour, but some may charge as low as $30 per hour, while others may charge upwards of $200 per hour or more. Some freelancers may also offer project-based pricing, where they charge a flat fee for a specific project, rather than hourly rates.

Who are the cheapest SEO service providers? ›

Budget SEO Agency is offering On-Page and Off-Page SEO packages at the cheapest rate in India. Check our price list. Everything is starting from just ₹1250, ($25).

How to calculate SEO budget? ›

To calculate the cost of SEO and its true ROI use this formula: Average lifetime profits from new customers acquired in one month divided by monthly organic marketing spend.

Does SEO have a cost per click? ›

SEO (Search Engine Optimisation) can be a free marketing strategy in the sense that you don't have to pay for clicks or impressions like you would with pay-per-click (PPC) advertising. However, there are costs associated with implementing an effective SEO strategy.

How much is SEO outsourcing? ›

Typically, most businesses spend anywhere from $2500 to $10,000+ per month on SEO services. Keep reading to learn more about what goes into SEO agency cost, including pricing models for different SEO service providers, factors that affect SEO cost, and services included.

What is the minimum spend for SEO? ›

Investing adequately in SEO services can significantly impact your online presence and business growth. According to recent data, over half of all SEO professionals work with monthly budgets ranging from $500 to $5,000, with 28.6% reporting budgets in the $1,001-$5,000 range.

Does SEO require budget? ›

With SEO comes time, planning, and most of all, cost. Creating an SEO budget is one of the most important steps for growing your marketing without breaking the bank.

Is it worth spending money on SEO? ›

Why does SEO matter? Without a SEO strategy, it may be very difficult to rank for your desired keywords. Even if you have a well-designed website or thousands of links, search engines have no obligation to rank you. On-page content is hugely important in determining where you will show up in the search results.

How much should I spend on search engine marketing? ›

Search engine marketing (SEM) costs typically range from $3,000 to $10,000 each month – but there's more to it than you might think. A lot goes into a successful SEM campaign – factors like competition, keyword costs, and strategic ad placement.

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