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adore
Joined: Eons Ago
# Posts: 22
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Posted: 2004-Feb-05 11:12
Hello,
My company is going to offer SEO services for its customers.
I have prepared some pricing mechanism (which is attached below), could you give any suggestions if it looks reasonable or if it has any weak points that should be changed?
First of all, we set up fixed fee for kewyords analysis and preoptimization situation analysis, which is paid at the very beginning of the process.
Standard opimization fee is set up for every word separately and includes warranty of reaching top20. This fee can be modified in special circumstances, like:
- getting better position (e.g. top10 - x2, higher - negotiated individually)
- competitiveness of keyword (multiplyers also negotiated individually)
We want our customers to pay for results, thats why they pay after getting the target position - we plan to charge each keyword separately (e.g. at the end of each month).
Each customer can get keyword position reports generated monthly - at a fixed fee.
Taking into account seo post-optimization services like maintaining positions, we plan to charge a part of optimization fee (like 0,3 of it) - paid only if during the period keyword got target position.
What do you think about this mechanism?
Hope that described it clearly 
Thanks for advance for comments
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Rezac
Joined: Jan 25, 2004
# Posts: 817
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Posted: 2004-Feb-09 04:10
What's the warranty of STAYING in the top 20?, That's the question I should've asked. 
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yellowwing
Joined: May 21, 2002
# Posts: 2526
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Posted: 2004-Feb-09 05:12
I would imagine the post optimization service would cover the staying top 20.
The whole process sounds labor intensive. Especially the extensive reporting and complicated billing. If you have staff members doing parts of this, coordinating them into an efficient system will take practice and training. You might be able to automate some of the steps. But I think overall it has good potential to become a profitable model.
"My company is going to offer SEO services for its customers" - I am assuming you have an established client base from other services provided. The initial sales campaign would have to be carefully crafted. One thing they'll ask (or think) is "Why isn't this part of my service already?"
Its looks like you have done alot homework already for the technical preparation. Don't forget the sales and operations management part, or you'll end up with a few headaches. Headaches are not profitable! 
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adore
Joined: Eons Ago
# Posts: 22
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Posted: 2004-Feb-10 09:12
> I would imagine the post optimization service would cover the staying top 20.
Yes, certainly.
>The whole process sounds labor intensive. Especially the extensive reporting >and complicated billing. If you have staff members doing parts of this, >coordinating them into an efficient system will take practice and training. >You might be able to automate some of the steps.
It can be complicated, but we think of SEO as an complementary service - we assume there won't be lots of customers, especially that our prices are quite high on Polish market.
We have also prepared some scripts for report generating, so - as you said - part of work will be done automatically.
>But I think overall it has good potential to become a profitable model.
Have you any suggestions how could it be improved to be better for both - customers and us?
>"My company is going to offer SEO services for its customers" - I am assuming >you have an established client base from other services provided. The initial >sales campaign would have to be carefully crafted. One thing they'll ask (or >think) is "Why isn't this part of my service already?"
Yes, we would like to provide this service for our present customers.
In response to your second question - Polish SEO market is at the very beginning - there is still low level of awareness and potential benefits - we just try to introduce it.
>Its looks like you have done alot homework already for the technical >preparation. Don't forget the sales and operations management part, or you'll >end up with a few headaches. Headaches are not profitable!
I try to avoid as much as possible ;-) That's why I asked you - SEO experts - here
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vivi4427
Joined: Feb 12, 2004
# Posts: 4
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Posted: 2004-Feb-13 19:06
There are too many scenarios and too many factors to consider in the SEO field. I haven’t seen a good packaging of the services yet. One suggestion is to sell search-marketing sessions. One session of xx hr of professional work is worth $xxx. In some industries for some sites with some budget and some goals 2 sessions might be enough to get the results that satisfy the client. In some other industries and so on even 10 sessions wouldn’t be enough, so the client has to buy more sessions. Your pricing mechanism looks like a pure headache to me, even though it might work well for you.
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MakeMeTop
Joined: Jul 05, 2000
# Posts: 1714
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Posted: 2004-Feb-17 09:18
I spent a long time trying to work out a method of charging for clients that was both fair to them and (obviously) to us.
I disliked the payment for ranking model because I honestly didn't think it gave the best value to customers. Say you do the keyword research and come up with 1000 decent phrases. Sure, the top 20 may (between them) bring in 5000 uniques per month - but the remaining 980 phrases may bring in 15000 uniques per month! I want (and the customer truly needs us) to deliver as much appropriate traffic - so really I sould be optimising for all 1000 phrases.
On a cost per phrase model, this would be prohibitive, so I changed to a cost per unique visitor where:
a) The visitor came from a search engine or directory.
b) The visitor was not a repeat visit from the same SE on the same search term within 24 hours.
c) The search term used was applicable to the client market - we spend the first 6 weeks or so refining and removing from the billing inappropriate phrases.
d) Bookmarks, no referrers etc., are not charged for.
e) Set up costs are used as a deposit and are directly off-set against click-throughs - so no further payment is required from the customer until their deposit is used up.
f) If no relevant traffic is forthcoming the unused portion of the deposit is refunded after 3 months.
This has stopped arguments over ranking reports and traffic.
It works both in the client's and the SEO's favour as both parties win if the campaign is successful and the client doesn't lose money if the campaign is not.
Though not suitable in all markets, it may be worth considering in a new market where the value of SEO/SEM is not yet fully appreciated - yet standard advertising ROI models of cost of acquisition are.
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