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Best way to use $20,000 SEO budget?

Discussion in 'White Hat SEO' started by Faded, Jan 3, 2012.

  1. Faded

    Faded Jr. VIP Jr. VIP Premium Member

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    I have been ranking sites well lately using around a $500 monthly budget and one of my relatives was impressed with what I have accomplished so far since SEO, when done right, is by far one of the cheapest and efficient marketing methods that I have come across (this forum is a gold mine). I personally prefer white hat and sprinkle a little black into the mix to get the best bang for my buck short term and long term. Well, long story short, he offered to let me borrow $20,000 that he has just sitting around as an investment to support my SEO venture. Problem is I don't know if I should take the money since I don't know what the best way is to use such a large budget o_O. I have viable sites and products. Everything on the forums and what I have done in the past is geared towards smaller scale projects.

    The methods I use right now are nothing special... just linkpushes, pyramids, linkwheels and flowing juice to them using large amounts of low quality links.
     
  2. wannabie

    wannabie Elite Member

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    Why don't you save as much as you can but set up a few other $500 a month sites?
     
  3. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    Never borrow money from relatives for business.

    Just my 2 cents :)
     
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  4. jon_xx_x

    jon_xx_x Jr. VIP Jr. VIP

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    Good advice
     
  5. jon_xx_x

    jon_xx_x Jr. VIP Jr. VIP

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    Don't take it just because it's there. Make sure you can use it, and not just blow it because you have it.

    I'd set up a bunch of mini sites that point to one money site. Maybe buy a few established sites as well.
     
  6. Execute

    Execute Supreme Member

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    With that kind of a budget you should definitely start targeting buying keywords with quite high competition as they are the ones that produce the greatest reward. Try and make your budget last as long as you can and make sure if you are going to be investing in a future website you make sure that the links are high quality to prevent any disturbances when the next major Google update comes.

    Also try and diversify your links as best as you can just in case Google devalues a certain type of link your site will not drastically drop overnight.

    If you have the time you could invest in some products to help automate certain tasks. However with that kind of a budget that might not be the first thing on your mind.

    You could also go through some trials with that kind of a budget to see what kind of link building strategies are the best value for money.

    Good luck with your decisions and jealous of your budget ;)
     
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  7. NikosX

    NikosX Power Member

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    come on! really?
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    i would go for the "not take money from relatives for business" thing, but if you are definitely going to take them then I would go for a ton of ready to use sites and outsourced work to make a steady income.

    or you can think of something bigger and try to hire some people to make it...
     
  8. Grimey

    Grimey Registered Member

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    If you have proven methods then I wouldn't shy away from borrowing funds from relatives. Just do what you know works until you can grow and pay them back. Just be smart with it.. it's not like you have to spend it all anyways.
     
  9. afro25

    afro25 Regular Member

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    1) Keyword research
    2) Setup hosting accounts
    3) Purchase Semi-Broad domains
    4) Setup ~50 websites, based on Medium sized niches, aim for a minimum of 15,000 potential monthly visits for #1 position across all keywords (37,500+ monthly searches across all keywords)
    5) Outsource $19,000 worth of Articles for $4 per article (bulk purchase discounts maybe?) for a total of 4750 articles, or 95 articles per site, enough to cover a pretty good number of keywords and longtails.
    6) Setup automatic posting of the 95 articles per site so that one post is made every third day - All posts will be complete within a year.
    7) As the content is posted, make sure that the internal linking structure gives every single post a large number of backlinks, this should help each to rank quite well once the site gains authority.
    8) Income will be slow at first, but should snowball as the sites authority propels each article higher in rank. By the end of the year you should have atleast 15,000 monthly visits per site - Going off of a 2% CTR on adsense and a profit of 20cents per click, that's ~$60/site/month, or $3000/month over 50 sites.

    Good in theory, though i'm pretty sure that like everything else, it probably wouldn't work out exactly as planned.
     
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  10. treetreetree

    treetreetree Junior Member

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    I would hire 3 or 4 people for minimum wage, teach them the basics and start an SEO firm. Gradually give them raises and scale it out, make it worth their while for all of them to stay together as a team(give each specific skill sets none of them all the skills) and build a team. Turn it into 20 grand a month. Either that or don't take the money and scale it on your own. Take it if you can make them a profit quickly though.
     
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  11. Leonne

    Leonne Registered Member

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    I say make sure you can make that kind of money back as soon as you can. If you're not sure, than think it through a bit more. Don't rush into it as you may end up losing all of the money. I personally wouldn't borrow the money unless I knew what it was I was going to do and that it would make the money back.

    Good luck! :)
     
  12. jascoken

    jascoken Senior Member

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    Don't take the money. Grow embrionically like you have been doing; the added pressure of owing a family member thousands can break a winning formula. It will also give you a false sense of security in terms of cash-flow. Every penny you spend should cause a penny+ to be earned.

    Throwing a much larger amount at SEO can get you in deep trouble. Just expand on what you've done in stages; you'll be more confident about the results, and less at risk of family 'fall-out'.
     
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  13. BigMarcusStud

    BigMarcusStud Senior Member

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    Take the money as long as you have a set plan in place.

    Use just a percentage of the money per month. $2,000 a month maybe? This way, you won't be tempted to blow everything on just a few strategies. So let's say that your strategy failed, at least you're only down $2k, not the whole $20k. Also, you'll never know if something will blow up the following month. It's a good idea to have part of the money around to invest in something that's about to blow up.

    Then set up a monthly scheme to pay your relative (with interest). This way, you will really work hard to earn money so you can pay your relative.
     
  14. Getwhatchuwant

    Getwhatchuwant Jr. VIP Jr. VIP Premium Member

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    Exactly, 90% of us on this forum either have or are making money because we funded it ourselves. I still work to pay bills and reinvest until the IM grows to a point where I can comfortably stop the "real job" thing.

    EDIT** I have a BETTER idea, instead of "taking" the money from your relative GO TO WORK for him doing IM, assuming he has his own business. Charge him $1000 pocket $500 and grow your business monthly. Then since he is using a financial advisor (presumably) have HIM refer you to his financial planner and explain what you can offer. These guys CAN make big $$$ so you can charge him a nice rate for what will likely be a pretty easy local keyword. The once you have the financial planner in your pocket have him refer you to some of HIS wealthy clients that can afford your services. As a FP he knows how much money these people have. In exchange for every signed deal you knock off $100 p/month on HIS service.

    So if you charge $1000 and he gets you 10 clients his SEO is free but now you are earning $10k per month from the other 10 and only $5500 p/month..which to me is a bit high anyway but once you get to page 1 you can slow down on what you are buying and go with slower more higher value SEO and pocket even more profit.
     
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    Last edited: Jan 4, 2012
  15. Faded

    Faded Jr. VIP Jr. VIP Premium Member

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    Thank you for all the advice guys. I really wasn't expecting this much help. Good words of wisdom to not borrow investment money from relatives. I think I will take only as much as I can pay back and use it to scale up what I am already doing instead of looking for a quick get rich scheme. I am still fairly new to SEO (less than 6 months experience) and I think I still have a lot to learn before I can launch a successful SEO firm. Grinding is a b****
     
  16. blackhatchampion

    blackhatchampion Senior Member

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    I agree!
     
  17. the_demon

    the_demon Jr. Executive VIP

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    I'd advise not taking the money unless you make absolutely clear that with IM there is a high risk he could lost it all. If he still chooses to invest that's his business. Similar to buying a lottery ticket he knows what odds he's up against. That seems fair imho.
     
  18. Autumn

    Autumn Elite Member

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    You seem to have conveniently overlooked your backlinking costs. You aren't going to be gaining any "authority" without external backlinking - authority is conferred through high quality backlinks, which cost something either in money or in time and effort. Ranking by crosslinking your own new sites just doesn't work in any substantial way.

    Also $3K per month return after a year from a $20K budget is not a very good return in the search engine industry.

    I would advise the OP not to take the money if he doesn't know what to do with it. Just grow organically, and when you can sit down and make a solid plan based on your own experience and knowledge for what you'd do with $20K seed money, then THAT's when you take the money.
     
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    Last edited: Jan 5, 2012
  19. RBseatown

    RBseatown Junior Member

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    The only thing that I would recommend that has not been said so far is to just continue what you know and scale it. Do not try to get too fancy, because thats when you will run into issues.

    Sign up for the services that will help you automate what you already do that you could not afford before.
     
  20. afro25

    afro25 Regular Member

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    Well the backlinking wouldn't be that difficult if the keyword research is done good enough. I've had pretty good results simply making a few high quality Web 2.0's such as Squidoo lenses, and then letting the internal linking of my sites push newer articles up high without any extra backlinking, though only with easy niches, which i did mean to suggest.

    The $3k -hypothetical- return per month wouldn't just start after a year, it should start much earlier but steadily increase upto that much.
    In either case, if it did start after a year then it would take only another 6 months to cover your costs, a ROI of 15% monthly is significantly higher than any bank account earning 5/6% per year :p

    I've found a new niche that is pretty much untouched and i plan on doing a case study as close to what i suggested as i can do - Currently spending the next few weeks writing and outsourcing articles and optimizing them for their keywords. Then i'll do a proper test on how well internal linking with very few outside backlinks can work in an uncompetitive niche.