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When is it profitable to hire SEO services?

If we would like to hire a SEO agency or a freelance SEO, we should look for information about what general strengths should a SEO agency have. How to do that? Easy enough, just Googled it and Google will show you all the information needed. From here, as head of the marketing department or CEO, you can use your sixth sense to detect those that look suspicious and those who are not. As everything in life, I recommend you to ask for several SEO budgets proposals, ask for recommendations, compare your potential agencies/freelance…

1. Request your contacts to recommend you agencies or SEO professionals.

A “friend” will never lie to you. If a friend or an acquaintance recommends someone to you, you will know for a fact that this someone is a reliable choice.

2. Request between 3 and 5 quotes.

Do not fear about relocation issues. If you work from Madrid and consider that there is an interesting SEO agency in Barcelona or Zaragoza which conveys confidence to your business and meets your needs, do not hesitate to hire them, since we are in a technological age and you have a technological product which is selling to different cities or countries. Be consistent with the agency you want to work with and hire. It is advisable to ask from 3 to 5 quotes from different agencies and recommended professionals. In that way, you can get the whole picture in terms of service quality and a quire accurate fare.

3. Beware of those whose fares are too low.

As a song by The Softs says: “How does life behave with you? Are you worth what you have?” Do not lie to yourself. Do you consider your services to have a low fare? As we all know “you get what you pay for”. Therefore, if someone is offering you to appear in the top of search engines for keywords related to your industry and that your current income will be multiplied by 10x, would you consider those services to have a low fare? Would you believe that those people, even though they are “ IT geeks”, do not know how much they are worth it? Do not forget to be consistent.

4. Exclude those agencies that forbid you to talk to the SEO that will be in charge of your organic positioning.

Many agencies have people whose work is to handle communication with clients. I personally, do not like this kind of organizations since I believe that there is time and messages wasted. It is advisable to ask about the daily basis with them, whether you will get a report each month, which kind of report, with what kind of information and so on.

5. Beware with those that assure you will to get results instantly.

Nobody can be 100% sure of assuring results. As an agency/professional you can only assure work and transparency. It is not wise to guarantee results while working with secret formulas impossible to share with anyone.
From that, we need to choose between those agencies which we have confidence in as well as we have their quotes in order for us to take a decision later. It is a very delicate decision and so it cannot be made before we are clear about a series of points:

1. Have a clear idea about your SEO strategy.

It is a big mistake to start a SEO, SEM, Affiliation, Display… campaign and stop it within a month period. This is the result of a lack of strategy as well as lack of coherence when starting a campaign. You must be clear about why you want to work, in this case SEO.

2. For how long, at least, will I need this service?

It is not worth to work with an agency within 3 month and since you do not see results (but you do see work), you proceed with finishing the contract agreement. As you might know, it takes a while to see results. Therefore, you should be aware that you need at least half a year to see results. You have to be consistent with your decisions.

3. Goals.

You must have very clear the goals you want to achieve. Visits, sales, presence, visibility, brand… You have to quantify those KPI. Regarding this last point, you should ask yourself the following:

How many organic visits are needed for a seo agency to know they are being profitable? Which is the same as, how many organic visits do I need to justify the fare charged by a SEO agency?

The calculation is very simple. For that, we have to make sure we know the margin we are working with. With that I mean that whether your margin is 20€ for each sale? Or is it 20% of 5 €? On the other hand, we have to know which is our conversion rate from lead to sale or if it is just from sale.
With all that information we can use the following formula:

visits to breack even SEO


*Visitas para Break Even = Visits for Break Even
* Coste = Cost
*Margen X Conv. Rate = Margin X Conversion Rate

The Cost is going to be the monthly fare from the SEO agency. Let’s imagine this SEO agency is charging us with 1.500€/month. And our ROI graphs look like the following:


We have to keep in mind a very important point, which is that this calculation of the SEO ROI is based on that every month the agengy is achieving X number of new visitors as well as generating us new sales and we assume that each month the SEO visits are being accumulated by previous months.
This post has been taken from a talk show we have performed at the eShow Madrid. Following you can check the Slideshare use for the talk with all the slides used.


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