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Loading...When it comes to money, we want to know as much as possible. Why are services priced in a specific way? What determines the costs of SEO activities? Why is the SEO market known for such significant discrepancies? Most SEO services are provided based on the B2B model, therefore, transparency and mutual understanding are the keys to success. Especially when talking about the prices. Let’s sum up the most important pieces of information. This entry is prepared mainly for entrepreneurs wondering whether it’s worth investing in SEO, not for SEO specialists. When considering SEO, its price is frequently the deciding factor. 
SEO pricing – which settlement model to choose?
There are two main settlement models – subscription and performance-based SEO. When it comes to performance-based SEO, you’re charged only if your website reaches the determined position (e.g. being displayed in the top 10 for a specific phrase). On the other hand, in the case of a subscription, you have a fixed amount paid monthly to the agency, independent of the SEO effects. Some agencies offer a hybrid settlement model which combines both of the abovementioned solutions. Then, an agency usually receives a monthly fee for its SEO activities and additionally gets bonuses depending on specific, assumed results achieved by the website. Performance-based SEO seems beneficial from the client’s point of view and a few years ago it was an unquestionable standard. However, the situation today differs a bit and it’s not the most optimal and advisable solution. Why? There are two main reasons: 1. On the one hand, SEO effects are highly affected by Google (the most popular search engine) and modifications implemented by its algorithms. To comprehend what the problem is all about, it’s worth remembering that Google isn’t particularly keen on SEO. Consequently, from time to time it updates the algorithms so that positions of websites ranked high, thanks to “unnatural” activities, are decreased – in many cases Google categorizes the effects of SEO activities as such unnatural activities. Changes introduced by Google can strongly affect search results. 2. The fact that performance-based SEO makes achieving high positions over a short period of time the main motivation of specialists is another issue. Although such an approach may satisfy the client, this incentive increases the risk of choosing techniques that aren’t appreciated by Google, like link farms. In this case, it’s the client that bears the risk. If a filter is imposed on your website (check if your page was penalized by Google), the site is removed from the search results which may mean a lack of profits for your business. However, before this happens, the website may actually be ranked in high positions for some time and the agency will be receiving remuneration for this effect under the contract. In a nutshell, although subscription and hybrid models seem to be more expensive, the situation is completely different in the long run. Choosing them will protect you against specialists applying aggressive SEO techniques which may be considered black hat SEO. To learn why performance-based SEO isn’t always as beneficial as it might seem, go to our entry: Why is it better to stay away from performance-based payment for SEO?
The crux is that the extent to which the factors listed below affect your SEO pricing ultimately depends on the contract you sign with the agency. We’ll do our best to point out crucial elements and explain why they’re so vital. Let’s get it started!
Settlement based on long tail keywords may be a bit different than a standard model as usually complex phrases aren’t highly competitive. This means that being ranked in top positions for relatively many phrases after only a few months of performing SEO activities isn’t something uncommon. Therefore, you may expect that bonuses for reaching the top 10 positions for long tail phrases will be lower than in the case of standard SEO. However, there is one main disadvantage of long tail SEO. The client’s website is accessed mainly by people who are familiar with the type of products or services they are looking for. The problem is that many potential customers may start their search by typing more general phrases that will allow them to learn the subject. There’s a risk that the first page they visit will provide them with satisfactory information and consequently they won’t decide to enter a more precise long tail keyword.
Expert Comment
Nowadays, we don’t encounter performance-based SEO so frequently. This model isn’t particularly beneficial mainly because of the fact that the search engine is constantly changing and the results are fluctuating. Moreover, contracts based on this model frequently include low (or zero) volume phrases. In this case, being displayed even in the top 3 won’t bring you any benefits or traffic because nobody enters such phrases into the search engine.
Gosia Tarnawska
Head of SEO