Businesses typically spend anywhere from $500 to over $10,000 per month on search engine optimization (SEO), which can make it difficult to determine the right amount for your company. Should you invest tens of thousands of dollars monthly, or is a few hundred enough to achieve your goals and remain competitive?
In this post, we’ll walk you through everything you need to know to establish an effective SEO budget. By the end, you’ll have a clear understanding of essential SEO costs, the risks of underinvestment, and the critical steps to set a budget that aligns with your business objectives.
What Is an SEO Budget Plan?
An SEO budget plan outlines how funds will be allocated toward various search engine optimization activities. It breaks down the costs associated with different aspects of your search engine optimization strategy, helping you use your resources more efficiently.
Having a well-structured plan ensures that you don’t overspend on certain areas or neglect important aspects that need attention. It provides a clear view of where your money is being spent, making it easier to track ROI and adjust your approach as needed.
For those offering search engine optimization services, having a budget plan in place helps determine appropriate pricing for clients and ensures a balanced approach to SEO investment.
Why Creating an SEO Budget is Essential
A successful strategy requires a balance of different tactics, typically involving on-page efforts like content optimization for keywords, off-page tasks such as building backlinks to boost domain authority and technical improvements that focus on aspects like site speed and code structure.
The purpose of an SEO budget is to allocate resources effectively across these areas. Without a clear budget, you risk overspending on strategies that may not deliver a strong return on investment (ROI) or could even harm your business. For instance, neglecting to invest in quality backlinks could lead to the temptation of using harmful, spammy practices that violate Google’s guidelines.
Similarly, relying entirely on AI-generated content without allocating a budget for proper content creation can have drawbacks, as AI tools may not always deliver the quality needed for SEO success. A well-planned budget ensures your resources are spent wisely, maximizing your efforts and protecting your site from risky tactics.
Here are several other reasons why having an SEO budget is crucial to your overall strategy:
- Prioritizing High-Impact Tactics: Not all SEO strategies are necessary for every business. With a defined budget, focus on the tactics that bring the best results. While experimentation is valuable, prioritize proven methods while setting aside some resources to explore new approaches.
- Staying on Track to Meet Goals: Your budget helps ensure that SEO investments align with business goals, preventing unnecessary spending. Just like dedicating funds to a gym membership keeps you committed, allocating resources to specific tools and tactics increases the likelihood of reaching your goals.
- Tracking ROI: A well-structured budget simplifies tracking ROI, helping you see which SEO tactics are working. Knowing how much you’ve spent on activities like link building or content optimization allows you to adjust efforts and prioritize the areas that provide the best results.
How Much Should You Invest in SEO?
Determining how much to spend on SEO varies based on your business size, objectives, competition, and the current state of your search engine optimization efforts. There’s no universal answer, but understanding your specific needs is key.
If you operate in a highly competitive industry, you may need to allocate more resources to rank well in search engine results pages (SERPs). According to a recent survey, 28.56% of SEO professionals manage budgets between $1,001 and $5,000 per month, with small businesses typically spending between $500 and $2,000. Larger national and enterprise-level businesses usually invest significantly more.
Another survey revealed that 35.1% of marketers allocate a moderate portion of their marketing budget to SEO, while a quarter spend the majority on it. The challenge lies in wisely distributing your resources to ensure maximum impact for your SEO efforts.
How to Budget for SEO
Building a realistic SEO budget requires careful planning and a clear understanding of your overall digital marketing goals. Follow these five steps to develop a custom SEO budget tailored to your business needs.
1. Evaluate Your Digital Marketing Budget
When planning for business growth, SEO is one of several key channels that can enhance online visibility and drive product or service promotion. To determine the appropriate investment in SEO, begin by reviewing your overall digital marketing budget.
Your primary channels might include SEO, email campaigns, social media marketing, search ads (such as PPC or Google Ads), and paid social media (like Facebook and LinkedIn ads). Analyze how funds are currently distributed among these channels and assess their performance.
For example, if half of your budget is directed towards social media, but it only accounts for 10% of your revenue, while organic search receives just 10% of the budget but contributes 50% of the revenue, it’s worth considering a budget adjustment.
Shifting resources toward search engine marketing (SEM) and reducing spend on less impactful channels like social media could significantly enhance key metrics such as traffic and revenue.
2. Establish Objectives for Your SEO Strategy
An effective search engine optimization strategy varies based on specific business goals. The budget dedicated to SEO should align with what needs to be achieved and the current progress toward those objectives.
For instance, if a site generates around 1,000 organic clicks per month but requires 5,000 clicks to meet lead generation and sales targets, the goal is to increase organic traffic fivefold. In such cases, increasing the SEO budget may be necessary. However, if the target is only 500 clicks away, a smaller budget may suffice.
It’s important to recognize that success in SEO is influenced by factors beyond internal efforts. Industry competition and market conditions play a significant role in determining the ideal budget.
In competitive sectors, particularly when facing well-established brands, a larger budget might be required to keep pace. Matching their content output or link-building efforts can demand additional resources and time.
Analyzing competitors can also provide valuable insights. For example, even if a competitor has a large number of backlinks, deeper analysis may reveal that only a fraction of those links are valuable. By focusing on acquiring high-quality backlinks, businesses can more efficiently compete without needing to match the total quantity.
3. Develop an SEO Marketing Timeline
Once clear goals are set, the next step is to establish a timeline for the strategy. Having a defined time frame helps set deadlines, track progress with milestones, and allocate the budget more efficiently.
For instance, are key marketing objectives expected to be reached by the end of the quarter, or is there a plan for a yearlong SEO and content strategy?
While short-term campaigns can deliver measurable results, SEO typically requires a longer-term approach for ongoing optimization and content creation. A commitment of six to 12 months is generally recommended for businesses serious about SEO efforts. After this period, both strategy and budget should be reviewed and adjusted.
4. Understand SEO Software Costs
SEO-related expenses generally fall into two categories: software and services. Software costs tend to be a smaller part of the monthly SEO budget compared to services.
For managing SEO and content, software costs usually range between $150 and $600 per month. Larger marketing teams may need enterprise-level tools, which can start at $1,000 or more per month.
If managed SEO services are chosen, much of the software costs are often included, as the service provider handles software management. In such cases, software expenses may not need to be considered separately in the budget.
5. Consider Service Costs in Your SEO Budget
Search engine optimization services often represent a significant portion of any SEO budget. From keyword research and content creation to link building, many aspects of SEO require manual work that cannot be automated by software alone.
When outsourcing search engine optimization services, expect to allocate between $500 and $10,000 per month, depending on the scope and complexity of the work. If SEO is managed in-house, factor in the time employees will spend on training and completing tasks, then calculate costs based on their hourly rates, along with any additional employee benefits.
In-house management can sometimes be more cost-effective, but outsourcing to contractors or agencies offers more predictable pricing, with options such as project-based or hourly rates. This can help businesses plan their budget more effectively.
Key SEO Expenses
Running a successful SEO campaign involves various tools and services, but which ones are truly necessary? Consider the following essential costs:
SEO Software
Search engine optimization software typically falls into two main categories: tools for optimizing your site and content management.
SEO Tools
While you can subscribe to individual SEO tools, an all-in-one SEO platform can save both time and money. These platforms offer features like keyword research, rank tracking, and competitor analysis.
- Ahrefs provides a comprehensive SEO toolkit that includes site audits, keyword exploration, rank tracking, and competitive research. Plans start at $99/month.
- Moz offers a similar suite with tools for keyword research, backlink analysis, and local SEO. Moz Pro plans also start at $99/month.
- Semrush combines SEO with content marketing tools, including keyword research, competitor analysis, and writing optimization features. Subscriptions start at $129.95/month.
Boost your website’s performance with this comprehensive suite of free tools that cover essential SEO aspects such as page speed testing, link reports, and mobile optimization. These tools are designed to enhance both on-page and off-page SEO, helping you improve rankings and drive more traffic.
Content Management Tools
For those working with limited budgets, free tools like Google Docs and Sheets can help manage content. Paid options, however, streamline tasks such as content audits and internal linking:
- Letterdrop serves as a content marketing platform for B2B marketers, offering automated internal linking and SEO optimization. Pricing is available upon request.
- StoryChief helps teams create and manage SEO-optimized content across multiple channels, with plans starting at $80/month.
SEO Services
Unlike software, SEO services vary depending on your needs. Some services are one-time investments, while others require ongoing costs. A detailed breakdown of SEO packages and pricing can provide further insight.
SEO or Content Audit
An SEO or content audit is usually the initial step in an SEO strategy. It helps establish a baseline, identify problems, and set measurable goals before starting optimization efforts.
Content Strategy
An effective SEO strategy prioritizes content that ranks highly on search engine results pages (SERPs). However, before writing and publishing, it’s essential to create a clear roadmap. A strong content marketing strategy uses audience insights and competitive research to plan your content effectively.
Content Creation
Unlike some search engine optimization services that are one-time investments, content creation demands ongoing resources. The frequency of content publication is typically guided by your content strategy, which directly impacts the overall cost of producing new material.
Link Building
Backlinks play a vital role in enhancing site authority and signaling high-quality content to search engines, making link-building a critical and continuous investment. It involves consistent research and outreach efforts over time.
On-Page SEO
On-page SEO focuses on small, yet impactful, changes such as optimizing title tags, improving internal linking, and refining meta descriptions. Many SEO professionals offer this service on a monthly basis to help boost your site’s rankings.
Technical SEO
Technical SEO ensures your website delivers an optimal user experience, which is crucial for SEO success. This includes improving page speed, optimizing site structure, and resolving issues like duplicate content, all of which can greatly impact site performance.
Local SEO
For businesses that serve specific geographic areas, local SEO is vital. Local SEO packages typically involve keyword research specific to the region, content tailored to local services, Google Business Profile optimization, and managing local citations to increase visibility.
Effective SEO Strategies on a Small Budget
Wondering how to minimize SEO expenses without sacrificing results? Here’s how to prioritize costs effectively while avoiding common pitfalls.
Focus on Essential SEO Costs
Maximizing the return on your SEO investment with a tight budget requires strategic prioritization. Use these guidelines to optimize your SEO campaigns without compromising your goals.
Conduct an SEO Audit
A search engine optimization audit evaluates key areas like website architecture, content, keyword strategies, and backlinks to assess your current organic search performance. For instance, an audit might reveal that while your content and backlinks are strong, your site structure needs improvement.
In such cases, prioritize technical SEO to deliver the most significant results. After that, allocate the remaining budget to update evergreen content, improve keyword rankings, and attract more backlinks.
Use Free SEO Tools
While many tools require a subscription, free options are available that can help cut costs without losing effectiveness.
- Moz Free Tools: Conduct basic domain analysis, competitive research, and identify link-building opportunities. The free MozBar also provides SERP analysis during searches.
- Ahrefs Free Tools: Generate keyword ideas, check backlinks, and analyze keyword rankings. The Ahrefs toolbar offers on-page SEO insights for free.
Outsource Rather Than Hire In-House
For small businesses, hiring a full in-house team can be expensive. A more cost-effective option is outsourcing tasks to an agency. Working with an experienced and knowledgeable team helps ensure your efforts deliver results while staying within your budget. Careful research and planning are essential to ensure your budget aligns with your goals and avoids underperformance.
Risks of Cheap SEO
While trimming SEO costs can be beneficial, investing in overly cheap SEO can lead to subpar results. Beware of the following drawbacks:
- Generative AI Content: Low-budget SEO may involve AI-generated content, which often lacks originality. Although Google doesn’t penalize AI content currently, relying heavily on it can hinder your ability to stand out from competitors.
- Spammy Backlinks: A quality backlink portfolio requires high-quality content or an experienced link-building agency. Cheap SEO providers may use black hat tactics, leading to low-quality or spammy backlinks that can damage your site’s authority and rankings.
- Inefficient Use of Time: Cheap SEO may save money initially but often yields unsatisfactory results, wasting valuable time. After six to twelve months, you may find yourself lagging behind competitors who invested more strategically.
By prioritizing the right services and tools, you can achieve meaningful results on a limited budget while avoiding common pitfalls associated with low-cost providers.
How to Calculate SEO ROI Effectively
No matter the scale of your SEO efforts, it’s crucial to measure the return on investment (ROI) to assess the impact. By tracking conversions and calculating ROI, you can objectively evaluate the success of your campaigns and ensure your marketing spend is well-allocated.
To calculate SEO ROI, monitor key metrics such as conversion rates, total marketing costs, and the revenue generated through organic search. The formula to measure ROI is straightforward:
SEO ROI = (Total Revenue – SEO Cost) / SEO Cost x 100%
For example, if your monthly SEO spend is $1,500 and you generate $3,000 in revenue, your ROI would be 100%.
A positive ROI indicates successful performance, but it’s possible to have negative ROI if your organic search revenue falls short of your SEO spending.
To maintain successful SEO campaigns, track your ROI over time and compare results weekly or monthly. If your ROI is consistently positive or improving, no immediate changes are necessary. However, if ROI is low, negative, or declining, an updated SEO audit or a discussion with your SEO provider may be needed to identify and resolve potential issues.
Conclusion
Setting a well-planned SEO budget is crucial for maximizing your return on investment. By understanding your business needs, setting clear objectives, and evaluating key expenses like software, services, and content creation, you can allocate resources more effectively. Regularly tracking performance will help you make necessary adjustments to optimize your results. Avoiding common pitfalls, such as low-quality tactics that may harm your site, ensures that your investment leads to sustainable growth and a competitive advantage in search engine rankings.