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What is cost plus pricing strategy?

How do you manage guaranty-based SEO operations and pricing?

  • If you are one of the Search Engine Optimizers (SEOs) then you might get leads asking how much will you charge for making my site rank #1 in Google for "The Example Keyword". Very simple question on what we do, but to me, these are the toughest leads you can handle. Because, you are taking too much risk when you guaranty. Now there are are several problems: - If you can't guaranty this customer, the lead is gone - If you involve too much risk, then price will skyrocket - If you guaranty, then customer will think you'll be using Black Hat Now, my question is: - Is there any specific strategy to guaranty such customer? - If not, then what sort of customer awareness strategy you follow? - How do you accurately asses the effort? - How do you accurately asses the risk? How do you asses risk when the site is relatively new in comparison with other competitors? - How do you incorporate risk into your pricing system? (Do you affect the hours involved or cost involved?) - Do you go for fixed delivery period or just go for pricing at an ongoing basis? - Do you price for the hours of work done? or take different price for the site to climb up from #20 to #1 position? or spread the price at monthly basis as long as the site stays in #1 position (or in top 10)?

  • Answer:

    Google says, "No one can guarantee a #1 ranking on Google. Beware of SEOs that claim to guarantee rankings, allege a "special relationship" with Google, or advertise a "priority submit" to Google." This is taken from: http://www.google.com/support/webmasters/bin/answer.py?hl=en&answer=35291 (Italics are mine.)

Nick Manteris at Quora Visit the source

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Richard's got the right idea here... Basically, one needs to discern the client's goals and then determine how SEO can generate the traffic, and ultimately conversions, that will meet those goals. Unless the client specifically needs the cosmetic effects of a #1 ranking (and some legitimately do as a sales tool), what the client usually really wants is traffic, or an increase in traffic, and ultimately conversions. You could rank #5 for a gazillion relevant keywords and generate enough traffic to satisfy your client's needs...but never rank #1 for that one keyphrase that has all the perceived importance. Hope that helps! Good luck!

Kenny Shafer

Applying guarantees to SEO work is a risky business and you would certainly want to avoid projects where clients want to rank #1 for a specific keyword.  A better model would be to apply the results to traffic, not rankings, and, if you wish, apply some sort of bonus payment if you increase site traffic by x%, for example.

Richard Clement

Most reputable SEO firms won't give you a ranking guarantee. In this age of personalization, localized results, etc. ranking data means less then it ever did. I guess the answer to the question is "Don't."  You'll be doing both you and your clients a disservice. (Often there's more money in long tail keywords anyways.)

Anonymous

You need to educate client search engine ranking factors and how it will work. You can propose model on leads or traffic base rather than guarantee base. Try to evaluate client's goals and accordingly propose the guarantee. You can set some benchmark (70% of target will achieve withing specified time). Try to be transparent with client and educate them. It will help a lot.

Jignesh Gohel

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