Why do big companies charge $1000's for SEO

maxflight

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Hi Guys,

I have a very good resonable seo guy i pay him $120 a month for 5 keywords does a very good job why are sites charging $1000's for seo work when i can get it done for a fraction of the price
 
SEO is way more time consuming than ever these days. That guy is probably working his a$$ off to get your site ranked as the $120 may mean a lot to him.

I know people who charge $10k a month. And I believe it's fair enough. If a site will make you $5k/month once it's in the top 3, you shouldn't hesitate to spend $1k on it.

IM is a business. It should be treated like that.
 
It depends on many aspects. What niche it is, how competitive it is, how expensive the keywords are in PPC, etc...

For some keywords, you'd be looking at several thousand dollars worth of clicks per day, for others you'd be looking at pennies.

In all cases, I'd be really skeptical of U$ 120/month SEO contracts.
 
I've just recently overseen the signing of a $31k SEO contract for a couple of months work on one of our brand's websites.

I know I could get better value for money results probably from in this forum. However, you have to do things differently in the corporate world. You have large budgets set aside, you have global contracts with media agencies, and you can't afford for your billion $ brand to tank in the SERPS after a google update from using black hat methods.

I also hope this thread was genuine, and not self promotion for your SEO guy, ie you.
 
Because they are outsourcing, and half of that $1000 goes to paying the people they are buying links from.
 
If you have found a guy that can do consistent good quality work for $120 a month then set up your own seo company and resell his stuff for $1000s ?

A salesperson good enough to land clients worth 4-5 figures a month will need to be paid a large chunk of that profit though.
 
Most likely because their SEO actually works and is quality unlike a lot of other websites.
 
Lets talk about supply and demand.

The world has plenty of no talent unmotivated workers suitable only for minimum wage jobs. Big companies expect to pay these people little since they are easily replaced. Just about anybody can do their job.

On the opposite end we have the highly skilled, motivated workers. These kinds of people are rare so if a company finds one, they tend to make it worth their while to stick with them.

Not many people (relatively) can do proper SEO. You see where I'm getting at, right?
 
Depends on the niche and the market if they can spend 1000 a month on seo and make 10 times that when there site is ranked it is worth every penny
When some of my offline clients hit me up about seo I charge alot more then my competitors and most of them pay it because they know me and they know it will get ranked.

Last year one company had me on flat salary for 40k for the year just to do there online marketing. the price doesnt matter its what they get in return.
IF you target some of the higher end niches where people are spending 10xxx a month on ppc there happy to get ranked because its cheaper and they will on avg get better results once there ranked
 
1. Bigger companies have more overheads (and on plus side for the client, more experience and resources).

2. The bigger your clients, the more high quality and whitehat you (should) keep everything. And that costs more.
 
I think it is okay to pay 1000 if there is high quality meaning you wont get deindexed or hit by an update. Then it is all good IMO.

However what pisses me off is when companies charge a 1000 and use some black hat method that only costs them $15! Then you lose all the money + you get slapped by the G.
 
They charge such high amounts because companies have overheads and liabilities to pay. Someone doing the same SEO for you in the Philippines only has to pay 400 USD per month to cover all his living expenses and job-related costs and be able to break even. Companies have invested not only in people but also assets such as office space, so they have to somehow leverage their costs with how much they can charge so as to find a point to break even.

And the above is considering the same level of service of someone working in the Philippines and the big company charging for a basic package (not a premium package where these guys use their connections to give you high quality editorial links).

Hope my advice helps you.
 
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