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Charging clients for results vs fixed monthly charge

Discussion in 'Local SEO' started by Smeak, Mar 10, 2015.

  1. Smeak

    Smeak Junior Member

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    Hi, which strategy is better in your opinion? No rank no fees or just fixed monthly rank regardless of particular keyword position? If the charge is depended on ranking, how do you handle organic and local pack results - would you charge the client if a keyword was in top 10 for both organic and local map results?
     
  2. VIC SEO

    VIC SEO Elite Member

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    This is tricky part, i have been struggling myself for quite a long time to design default package so i can pith to every customer but in SEO most difficult thing to convince.some people want to pay nothing but other wants to pay real money so its really hard to stick with default package.

    what i have learn when you having discussion with client look at their caliber and then try to make best custom package either rank first pay later or monthly fee.
     
  3. adic222

    adic222 Registered Member

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    In my opinion results charge is better because it´s more motivating..
     
  4. LeanLow

    LeanLow Jr. VIP Jr. VIP

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    If you are in that 5% of seo agencies that can deliver actual results, and you already have upfront capital to invest then you can go for no rank no fee.
     
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  5. Danny1111

    Danny1111 Elite Member

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    Personally I would never do the No Rank No Fee model because it really is meaningless.

    Any business that knows anything about Seo knows it takes work, professionalism and time to achieve results because none of us owns Google - so there is never a 100% guarantee that results can be generated quickly ... also many companies use multiple Seo Firms over time - so if they have done crap work - you have to undo that as well.

    So I deserve to be paid for my time and effort just like any other business - as I have bills to pay and it does cost me to do the work.

    I actually would be concerned about companies that offer to work for free - it doesn't make sense.

    Cheers
     
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  6. Nut-Nights

    Nut-Nights Jr. VIP Jr. VIP

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    I do both and depends on what clients wants, First i try to convince them for monthly seo pack at fixed rate if i failed at doing this and i go with pay on results basis ,Most of the clients agree with pay on results basis. Like top 10 etc.
     
  7. Andrew Scherer

    Andrew Scherer Jr. VIP Jr. VIP Premium Member

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    Get yourself on a decent monthly retainer. No less than $500/mo IMO.
     
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  8. zanesta

    zanesta Regular Member

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    A monthly subscription based strategy works best in the long run :)
     
  9. ezlivin

    ezlivin Junior Member

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    I charge a flat rate of $2,400 to rank a client in the local 7 pack. They pay $400 up front and then the remaining once they are ranked. After this, I have already proven myself and earned their trust. They will usually want to get their site ranked in the organic listings and then I can easily convert them to a monthly fee. That is what has worked for me.
     
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  10. safex

    safex Jr. VIP Jr. VIP

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    REAL SEO Company or Person never gives 100% Result guarantee. Charge for service & Time investment. if you not charging them for service and time than someone else will do. But Asking for flat fixed price makes no sense, as you not selling Google Rank slots.
     
  11. SamuelAdams

    SamuelAdams Newbie

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    No one ever hired someone because they offered to cut their own throat as part of the deal.

    Local SEO is 90% up-front, front-end time-intensive labor, with residual benefits taking place over the VERY long term. I Local SEO'd a business 2 years ago, haven't touched it since and it's still on page 1. Get ALL of your money up-front, not half, not results-based, and not open to "renegotiation" at some point in the future. Underpromise what you are going to deliver and then do the work.

    90% of local businesses ranking on page 1 are have substandard Local SEO and can be beat. 100% of Local businesses will be glad for you to do a whole lot of work and pay you nothing for it.
     
  12. tony_d

    tony_d Elite Member

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    The only way to sell local SEO, if you actually want to get traction and maintain traction, is to work on a model of ranking the client first, THEN calling to introduce yourself. You must assume they want to keep the ranking - and you can then explain the charges to 'keep doing the work' to keep them ranked.

    Contrary to the above posts - this is not 'offering a guarantee', it's just shifting all the risk over to your side. And, when you take all the risk, you can command a princely fee.

    When we were in this game, I would arbitrarily set the fees depending on what I thought made sense based on the volume of new business our service was delivering. If there were 320 searches a month, and I delivered top 3 ranking, and each customer was spending $2k, it's not a far stretch to charge anywhere from $2-$5k/mth for that ranking. Under the conventional "lets try rank you" client model, that would be anywhere from 4-10 clients that you'd need to first find, and then hand hold, and then chase for payment.

    My average billing for a top 3 ranking was >$1k a month, and the client would just keep paying in perpetuity because their phone keeps ringing, day in, day out.

    Compare that to having to hand hold the nervous-Nellies, and having to re-sell them each month or two to keep the few hundred dollars a month coming in... I know which I'd rather do. I'll take the $1k+ a month from a delighted client, who sends me massive amounts of referral business.

    You can imagine those referral conversations... under my model above, they go like this;

    "Man... I've been SO busy this month, the phone just hasn't stopped ringing. This guy just ranked our website and said we only need to pay to keep it there - you should really give them a call",

    vs the conventional model of SEO sales,

    "So these guys say they're doing something... and I'm spending all this money each month, but who knows... I'll give it another month or two and then pull the pin if I don't get something from it. But hey - if you want to call them, go ahead, you might have better luck".

    As with any business - it's ONLY about risk management, sales, and service delivery. If you take the risk, you get the reward on the back end, PLUS the reward of having clients flooding in to you, taking care of the sales part. It just doesn't make sense to me to do it any other way.

    Of course you won't rank 100% of sites. Who cares - when in fact, your success rate could be as miserably low as 20% and you'd still make an absolute killing, and live a stress-free existence with clients who absolutely love you, and are true ambassadors, rather than 'annoying people who call each month expecting an update'.

    A business is nothing more than a vehicle for monetizing value. So if your business is struggling, you must question the value that you offer the world.
     
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  13. myopic1

    myopic1 Regular Member

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    That, is pure gold.

    I had to come back and edit my post...that's fucking brilliant on so many levels, there are so many twists that come to mind straight away.
     
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    Last edited: May 1, 2015
  14. cnick79

    cnick79 Jr. VIP Jr. VIP

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    That's a very interesting strategy tony_d. How many keywords do you rank for them and how long does it usually take before you go to the client? In other words, how much time and money did you spend to get that ROI?
     
  15. myopic1

    myopic1 Regular Member

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    I've only just began to get my brain around the possibilities but the technicalities don't matter, it's local SEO, throw a few links in with your existing PBN, choose the main keyword with >500 searches/month and the difference to a nobody company will be astounding. You'll pay off someones mortgage and they wouldn't even know how it happened until you, a kind soul, call them on the phone.
     
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  16. ambushiv11

    ambushiv11 Jr. VIP Jr. VIP

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    @myopic1 couldn't agree more on tony_d post! That's the quality I like to see around here :)
     
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  17. myopic1

    myopic1 Regular Member

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    Teach a man to fish...and if he's clever he'll scale that shit up and open a Bubba Gump shrimp.
     
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  18. tony_d

    tony_d Elite Member

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    Yeah, you're right. It's life changing for them.

    But at the same time, it's a double edged sword - if you get that call wrong, you can easily sound like an extortionist... you need to balance your words delicately.
    We used to achieve that balance by being very clear at the outset of the call that "you do not owe us anything... what we've done is nothing more than a free trial - you're free to say 'no thanks' and we'll happily go away".

    You don't want to say "hey, if you want the calls to continue, pay up lads". That's the wrong way :)

    There's also the risk that the client thinks they've done it themselves, and then, there's also those who are paying another SEO company and think they were achieving the results rather than you. But as I said above - this model is about taking ALL the risks... including these operational risks. Some are worth mitigating against, others you just leave to the rounding error. Figure it out as you go.
     
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  19. myopic1

    myopic1 Regular Member

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    Wow. Talk about not seeing the wood for the trees. I was about to write a carefully crafted response to refute pretty much everything you just said but then I remembered, "Correct a wise man and he'll love you for it, correct a fool and he'll hate you for it". Best of luck.
     
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  20. blackpayman733

    blackpayman733 BANNED BANNED

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    Monthly subscription is great to get better results and you can take a rest while they doing seo, and report each week and check the progress,