The Price you can charge should depend on how competitive the keywords are. you can also go to the "service for sale" section of this great forum and check out the services there. This will give you an idea how much you can charge from your client.
I would charge monthly, or get full payment up front. It really depends how you are going to do the seo and how hard it will be as to how long/how much to charge. Are you outsourcing anything?
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