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Pricing in SEO

pricing-in-seo

Promotion, as a type of business, has one important feature - a different understanding process by the performer and the customer. An additional problem is that each specialist in the field of promotion can have their own opinions, regarding the methods used.

Agree that before building a house, a plan and a project are always created. When there is a situation of acceptance of work, the contractor and the customer have documentation, by which it is very easy to determine whether the desired result has been achieved.

At the same time, in the construction industry, most experts have very similar opinions regarding the application of technologies and methods to achieve results.

If the result differs from the plan, then it is quite easy for the builders to understand the cause of the problem. Given the high cost of materials and labor, practically building a house never starts without a project.

Website promotion according to the degree of complexity of the processes is hardly easier than constructing a cottage.

It is also interesting that customers and executors of a website promotion project often have a different understanding of the logic of project development. Customers want predictable results for moderate money, while the performer wants to complete the task and continue the project.

At first glance, the goals are close, but there is a very significant difference in the perception of planned and actual results. Performers, like no one else, understand the complexity and ambiguity of the processes they are involved in.

A conscientious performer always wants to get a good result and, as a rule, makes every effort. However everyone knows that the result of the promotion is not at all guaranteed. The basic model of a manager is the managerial cycle. This is the sequence of actions: planning - execution - control - analysis - planning.

Moreover, the main criterion for effective business processes is predictability and controllability. There is also a certain psychological perception of the plan and its implementation.

Business in the perception of a manager

it is always about making commitments and fulfilling them. The more accurate and prompt the obligations, the more reliable and convenient it is, for the manager.

It is easy to verify the validity of this statement if you read any commercial contract.

Therefore, when a manager starts interacting with an SEO company, his entire previous business experience starts to rear up.

First, clear There are no guarantees or tangible penalties.

Secondly, the result of the work is formulated approximately and in terms whose meaning seems to be clear, but not to an end. Often the manager gets the impression that these are not specialists. just some crooks!

Let's take a look at the most common offers of SEO companies, and Let's also see what their pros and cons are. So, most often time they will offer the following options for website promotion:

1. With payment for positions.

2. With payment for traffic.

3. With payment for the specific work performed, expressed in man-hours.

4. Pay per conversion (CPA).

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5. Forecasting the result of promotion and payment from the increase in sales (conversions).

Option 1. Website promotion with payment for positions in the Google search engine

This is by far the most popular SEO company scheme. Work evaluation is carried out by displaying keywords in the top 10, top 5 or top 1. to remove suspicions from the customer, they offer the following trick - payment by the fact of getting to the top. That is, it seems that all the risks are taken by the SEO company. However, this is not entirely true, or rather, not at all, unfortunately.

First, you will be asked to pay in advance. Second, never it is impossible to predict how much traffic, especially targeted traffic, even the 1st position will bring for a specific search query. Finally, thirdly, for a long time all search systems have implemented personalized issuance, i.e. the same site on different devices (even those standing next to each other) occupy different positions depending on the search history from these devices.

That is, in addition to geo-targeting, search engines systems now take into account the interests of users. Therefore, the issuance of a search system depends not only on the city and country, but also on the history of previously committed search queries, as well as transitions to certain web resources.

Option 2. Website promotion with payment for traffic

A fairly popular method due to the simplicity of evaluating the result, however, there are some pitfalls. But in any case, this option is much more transparent and customer-friendly than option 1.

A simple scheme for both the customer and the contractor - can be easily compared with a click from contextual advertising. Minus option. Traffic quality may be questionable, but it can be done easily understand using web analytics tools by analyzing such indicators, like: "bounce rate", "pages viewed per visit", conversion rate, etc.

The main disadvantage of this option is that SEO specialists working on this option, are interested in doing everything possible to attract both as much traffic as possible (targeted or non-targeted, "white" methods or "black" methods, converting traffic or not).

Thus, methods may be used that directly violate the license of search engines systems, which can lead to penalties on their part.

In addition, it is important to clearly identify key metrics (KPI) for reporting, as any action can be screwed up. It is also important when accounting to count only those requests, which exclude branded traffic so that the result of the work can be seen by an SEO specialist.

Option 3. Website promotion with payment for a specific work performed, expressed in man-hours

In principle, not a bad option, but here the customer fully relies on the competence of the artist, focusing on his portfolio, recommendations of friends, etc. However, it is also not ideal.

Option 4. Website promotion with pay-per-conversion (CPA)

A great option, but there are two problems here. Not all topics work with CPA networks. You can't even roughly predict how much traffic you'll get.

Thus, this option is suitable for banks, insurance companies and other companies whose traffic is present in CPA networks. The big minus is the possibility predict the result, i.e. you can get both 0 conversions and 1,000,000 pieces for which you will have to pay.

However, not every business is ready for so many conversions at the same time. For example, the training center has limited seating places. If the training center immediately receives 1,000,000 applications, they will physically not be able to work them out, and it will be necessary to pay.

So there is no scheduling option, you can't even roughly predict How much you will end up paying?

All these shortcomings are solved by the 5th option.

Option 5. Predicting the result of promotion and paying from the increased sales (conversions)

You see in advance a forecast of what you will receive (what targeted traffic, how much sales). If the forecast coincided with the months in September, October, November ..., then a large portion of that probability will coincide up till March next year also. So you are able to plan related activities, such as the number of seats at the training center.

Let's discuss which ideal option could suit both the customer and performer, i.e. we will try to raise mutual understanding between customer and performer.

If customers love plans so much, then let's make a good plan. A good plan is a plan that is carried out and goals are formulated in such a way that there is controversy about their achievement.

We need to solve two problems: the first is the correct forecast, and the second is the obvious formulation of the achieved result. Let's start with the second task and define what the achieved result is. Maybe, this will seem strange to promotion specialists. it is clear and customary what is measured either in dollars or in pieces. As they say, the only way to be understood is to speak in a language that the interlocutor knows.

Let's try to follow this advice and measure the results of our work. Any manager or director can quite accurately say how much he is ready to give to the client brought.

The first thing we need is to determine the marketing metrics of the project, i.e. what we want to get as an output (KPI, Key Performance Indicator - key indicators efficiency). On this day, we need to determine such indicators, as:

□ the maximum cost of the sale (how much we can spend on attracting a buyer, taking into account the life cycle and cross-selling);
□ maximum cost per visitor;
□ the minimum number of sales to survive;
□ the maximum number of sales that we can process. In the next step, we need to determine the total amount of possible search demand on the Internet. Define internet traffic ceilings in our niche, i.e. how many potential visitors are there on the Internet, who are interested in our topic, you can:
□ compose a complete semantic core (collect all target search queries);
□ analyze the number of requests for the region we need;
□ multiply the frequency of requests in exact accordance with the CTR (click through rate) first position. Next, we determine the current share of the search traffic of the website we need (what share we occupy now). To do this, you need to follow a series of steps, namely:
□ to analyze the current position of the site by the semantic core (or by category);
□ identify significant factors (seasonality, trends);
□ determine the current share of the search traffic of our project.

At the last step, we need to understand where to step. That is, what part of the pie we can take a bite with the available budget. At this stage, we need to prepare a forecast for the minimum option, i.e. if we fulfill certain step-by-step work aimed at building up positions, and we will be able to bring the site to at least positions from 20 to 30 in search engines, we will get a certain increase in targeted traffic (depending on the CTR of particular positions).

Having calculated the minimum option, it will not be difficult for us to calculate two other options, namely optimal and maximum.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2022 Temoor Dar

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