Guys what is critical is you dont undersell your service... $200? Really? Think about what you may have to do, most clients HAVE NO IDEA what the heck is going on.
On site SEO? Thats up to you!
Content? Even if you dont know their niche you have to learn and likely produce some good stuff ot go on the site or pay to have it outsourced. Not some poorly spun crap, but something that will make the owner look like an authority, and he is so crap wont work!
Link building? Are you going to trust your clients rankings on SB or Xrumer for long term?
Dont get me wrong, the automated approach still works but I use that as a supplement but you will have to try to get authority by getting them on wikipedia, high quality web 2.0 properties, guest blogging etc.. with all of those you will need unqiue and quality information or no one will be willing to give you a link.
Anyway with all of that in mind I think $1000 p/month is very fair for a medium comp niche, think value. Look at the adwords costs, look at the search numbers, make the client know what it would cost to get all those clicks and explain to them the value of what you are giving them.
I too am making most of my money with offline clients and they love me. I take their sites extremely seriously and I am working currently from 5 am until about 9 pm because I want them to succeed!
