How Much Should Small Businesses Spend on SEO?

November 4, 2023

The Importance of SEO for Small Businesses

In today’s digital age, consumers rely heavily on search engines to discover products, services, and local businesses. A robust SEO strategy ensures that your website ranks high on search engine result pages (SERPs), making it easier for potential customers to find you. SEO not only enhances online visibility but also builds trust and credibility among users. At this stage, SEO is a staple strategy for most marketing plans, and should be considered while making your annual budget.

Factors Influencing SEO Costs

Scope of the Website:

The complexity and size of your website influence SEO costs. Larger websites with numerous pages and intricate structures require more extensive optimization efforts, leading to higher expenses.

Keyword Competition:

Highly competitive keywords demand more resources to rank effectively. Businesses operating in industries with intense keyword competition might need a higher budget to outperform their rivals. Niche products and services typically perform well online because of the lack of keyword competition. If you have a niche set of offerings, do not sleep on SEO.

Target Audience and Geography:

Local SEO targeting a specific geographic area generally incurs lower costs than national or international SEO campaigns. Understanding your target audience and their location is crucial in budget allocation. Naturally, a software company targeting 50 states and Canada is going to require more output than a local plumber services a 10-mile radius.

Content Quality and Quantity:

High-quality, relevant content is the backbone of SEO. Investing in creating valuable content, such as blog posts, videos, and infographics, can impact your budget. Regularly updating and adding fresh content also contribute to ongoing SEO efforts.

On-Page and Off-Page Optimization:

On-page optimization involves optimizing elements on your website, such as meta tags, headers, and content. Off-page optimization includes building backlinks to improve the trust signals of your website to Google. Both aspects are integral to SEO and require budget allocation.

Technical SEO:

Technical SEO focuses on website structure, site speed, mobile-friendliness, and other technical aspects. Addressing technical issues is vital for search engine rankings and user experience, affecting your SEO budget.

SEO Agency vs. In-House Team:

Small businesses can choose between hiring an SEO agency or building an in-house SEO team. Each option has its costs, and the decision depends on the business’s specific needs and budget constraints. However, most small businesses do not have the resources, or the need for a full-time SEO specialist, and rely on hiring an agency or a freelancer.

Setting a Realistic SEO Budget for Small Businesses

Define Your Goals:

Start by setting clear, achievable goals for your SEO campaign. Whether it’s increasing website traffic, improving conversions, or enhancing brand awareness, well-defined objectives guide your budget allocation. If your goal is to gradually grow your website traffic by a few percent each year, or increase lead growth by 5%, then you will need a much smaller budget than a company looking to double their revenue in six months.

Conduct a Website Audit:

Evaluate your website’s current SEO status. Identify strengths, weaknesses, and areas needing improvement. This audit helps in prioritizing tasks and allocating budget where it’s needed the most. Most SEO organizations will provide an audit initially in some capacity to evaluate your needs.

Research and Get Quotes:

Research SEO agencies or professionals, request quotes, and compare services offered. Be wary of extremely low-cost services, as they might compromise quality and ethical practices. If you get a quote for SEO services under $500/month, tread very carefully. At these price points, you will not get much in terms of deliverables, and results will likely be nonexistent.

Focus on Quality Over Quantity:

It’s not about the quantity of keywords or backlinks but the quality. Invest in high-quality content, reputable backlinks, and ethical SEO practices to yield sustainable results.

Monitor and Adjust:

SEO is an ongoing process. Regularly monitor your campaign’s performance, analyze data, and adjust your strategy based on results. This iterative approach ensures that your budget is utilized effectively.

Stay Informed:

The digital landscape and SEO algorithms evolve constantly. Stay informed about industry trends and updates to adapt your strategy accordingly. This knowledge helps you make informed decisions about your SEO budget.

So, After All That, How Do I Know How Much to Invest in SEO?

The short answer; it depends. The broad range is between $500 and $3,000 per month for most small businesses. The average price for SEO on most websites catering to small businesses is $1,500. When you start thinking about all of the deliverables that go into an SEO campaign, you want to make sure it is done right. For much less than $1,500/month, you won’t be receiving high quality content production, link building efforts, knowledgeable account managers, etc. Think about it from your business’s standpoint. If someone in your industry was offering services that should take 15-20 hours at a price point of $300 you would be leery, right? The same principle applies here. Do your homework, and find someone you can trust.

How to Find The Right SEO Partner for Your Small Business

Determining how much a small business should spend on SEO involves careful consideration. It is important to engage with an SEO team you can trust. Loading Leads Marketing takes the time to learn about your business, your goals, and your industry before giving you a quote. This way we know before we even get started that we have you on the right path towards success. Contact us today for a free consultation call, and let’s grow your business together with SEO.