Why Does SEO Cost So Much? A Step-by-Step Analysis

We have all heard of SEO and its critical aspect of growing online businesses. It is an investment and marketing strategy that can be found at the center of any successful online marketing campaign. However, companies have to pay a cost for SEO for this long-term marketing strategy.
This cost eventually adds up and raises eyebrows among many businesses. Many wonder why does SEO cost so much, and the answer isn’t simple. There are multiple factors affecting the cost of this service, from Google’s dramatic upgrade to the need for a good SEO for businesses. This article delves deeper into the intricacies of SEO pricing, exploring the factors contributing to its expense and insights into maximizing your investment.

Table of Contents

What is SEO and why does it matter?

Companies from around the globe need to reach their target audience and drive organic traffic to their websites. Search Engine Optimization is the method of optimizing websites to improve their visibility and rankings on search engine result pages [SERPs] such as Google.

Unlike other channels of marketing in Australia with short-term effects, SEO has long-lasting benefits for companies. By establishing a strong online presence and building brand credibility, SEOs become an important aspect of making a business grow.

For instance, when a potential customer types for a service in the search engine, they are choosing the top three service providers. So, just building a website and then sitting back to relax isn’t going to help. To grow and get the right footfall on your website, you would require good SEO. It is the magic wand that will organically let you be one of those top three websites and increase your value and ranking among customers.
Additionally, it will add to your business’s credibility. The top websites suggested by these search engine pages are considered to be the best and most loved in the market.

Factors affecting SEO costs

So, how much does search engine optimization cost? Well, in the Australian market, the cost of Seo lies somewhere around $ 2,500 to $ 5,000 per month. But it’s not exactly expensive. It’s an investment a business consciously decides to make for the growth of its business.

Let’s compare SEO to other methods of marketing, like paid advertising. It is the most cost-effective strategy for a business with the highest return on investment. Rather than focusing on the price, when thinking about SEO, a business needs to look at the ROI to grow exponentially.

But if you are wondering why does SEO cost so much, then there are a plethora of factors working behind the cost of SEO. Some of them are as follows:

1. Keyword research

To rank better on the search engines, it is important to have the right keywords. These keywords drive customers to your website as these are the words they search for. Hence, the right keyword becomes a fundamental step in any SEO campaign.

A thorough keyword research helps determine the target audience intent and the search volume of the keyword. For instance, in the tourism industry, keywords like “best beaches in Australia”, and “Great Barrier Reef tours” are competitive.

This process is complex and competitive, which significantly impacts the cost of SEO. Since it is the starting point for SEO, multiple tools are available for it in the market. Some of the tools used commonly for keyword research are Keywords Everywhere, SE Ranking, Google Keyword Planner, and more.

2. Content creation

Paying for SEO keywords becomes irrelevant without the right kind of content. High-quality and original content is the backbone of a successful SEO strategy. It is what drives users to a new website and builds a rapport among them. Creating valuable content that resonates with the target audience is important to derive the SEO results.

Content creation requires time and expertise that only professional content writers can provide. Well-versed with SEO practices and updated algorithms, content writers do more than just write for a website. They optimize the content according to the target audience, their pain points, and your business goals. Aligning all three, they curate content which benefits the client as well as the business. Hiring such professionals can be a significant expense, however, it is worth it to grow the business. Creating high-quality content is crucial for a successful SEO strategy. For more insights into crafting compelling content, check out our guide on Killer Content Marketing Strategies.

3. On-Page optimization

On-page optimization is the process of optimizing website elements such as URLs, meta tags, and keyword density to improve search engine visibility. Some on-page SEO techniques used by experts include adding external links, placing images in the content, and writing helpful content. This process requires the technical skills for structuring, keyword optimization, and the like. Here, the cost of SEO is not only dependent upon the skills, and their implementation knowledge, but also on time.

On-page SEO signals are continuously monitored by search engines. Adding the changing algorithm, and optimizing SEO becomes a task that requires proper time and attention to detail. The optimization process can be quite time-consuming because professionals need to keep a check on whether the business page matches the user’s search intent.

4. Off-Page optimization

Off-page optimization is as important as on-page optimization. It focuses on building external links on the website from relatable and reputable sources. A study by Moz found websites with more backlinks rank higher in the search results than websites without it. Hence, a quality backlink is important to build long-term authority and credibility with the target audience.
These backlinks can be acquired through outreach, relationship building, or paid services to bloggers, influencers, journalists, or other publishers.

4. Technical SEO

Apart from content and its optimization, the website speed is also a contributing factor to ranking higher as confirmed by Google. Technical SEO encompasses factors such as site speed, user experience, mobile-friendliness, indexing and more. Adding to the cost of SEO are its complexity and requirement of specialized skills to lead to higher conversion rates.

The time investment in SEO

SEO is an ongoing process, not an overnight one. It is a highly competitive field that requires a lot of time and effort. According to a study by BrightEdge an SEO campaign can take anywhere from 3 to 6 months to show results. But why is that?

Search Engine Optimization is a long-term investment. Its campaigns aim to build a framework for a business’s benefit even after the conclusion of the campaign. This takes time, consistent efforts, and regular monitoring of the SEO and its performance to find what works for the business. Moreover, it also takes time for search engines to recognise and reward the optimized websites.

Hence, when working with SEO, asking how much does search engine optimization costs is a futile question. The real question to ask is what is the cost of time to be paid in SEO? It provides a long-term ROI to businesses as its benefits are reaped even after the campaign is concluded.

DIY SEO vs. Hiring a professional

Thinking of DIYing your SEO practices after knowing why does SEO cost so much? The decision of handling SEO in-house or hiring a professional needs to be well analyzed. It has the potential to break or make your website and business by extension. There are various factors on which this decision needs to be based, including expertise, time constraints, and budget.

While DIY SEO can save upfront costs for a business, it requires a significant learning curve and time commitment. Paying attention to the changing patterns in SEO may not be possible if one is preoccupied with other work. Additionally, there will be a cost of learning SEO best practices which lies around $ 5,000 per month. Whereas, hiring an experienced SEO agency offers specialized knowledge and efficiency in the field but comes with the cost of SEO. If you’re considering cost-effective marketing strategies, you might also find our guide on Effective Strategies for Social Media Marketing on a Budget useful.

To ensure value for money, it is also important for a business to compare the experience, strategies, transparency, and location. These factors greatly impact the SEO results and the business. Hence, hiring an SEO expert may be wiser than doing it by yourself especially if you have a medium or large-scale business. With less time and more work, the benefits of DIYing SEO diminishes rapidly.

Breaking down SEO pricing models

Let us now look at how much does SEO cost as per its model in detail:

1. Hourly SEO rates

SEO Service Provide	Hourly Charges [Approx]
SEO Agency	$ 140 to $ 250 per hour
SEO Freelancer	$ 80 and above per hour

The common price points for both the agencies and freelancers are experience, domain of work, and project intricacies.

2. Monthly retainers

Monthly retainers provide ongoing SEO services and predictable costs for businesses seeking long-term results. It is a strategic partnership with SEO professionals to ensure constant monitoring of SEO performance. This reduces the stress of searching for a new provider every month and starting with them from scratch. Additionally, it offers the flexibility of choosing when to continue with the agency as per the business’s needs.

Here’s how it works, for example, an agency offers a monthly retainer package of $ 2,000. This package would offer keyword research, content creation, basic link building, and more. A business has to make monthly payments to the agency to continue receiving the benefits of their services. They also have the option to choose when to stop working with the agency as per their needs.

3. Project based SEO

Project-based pricing is suitable for short-term goals and specific tasks such as site audits, content creation, and the like. As its name suggests, it is a project-based SEO service that lasts a specific amount of time. Here the cost of SEO is also typically defined upfront and is paid in full.

Monthly Retainers	Project Based SEO
Promotes big-picture thinking or a long-term ROI	Provides a limited ROI
It gives you priority access to the fancy, meaning your work comes first	It does not provide you with any priority treatment
There is no space for experimentation without commitment	You can experiment with new formats, and designs without any commitment
It requires a big budget as its payment is due every month	It is a budget-friendly option with one-time payments

4. Transparency in pricing

Transparency is the key when hiring an SEO agency. It is the only way an SEO provider can align a business’s goal with their target audience seamlessly. To evaluate the value you are receiving with an agency, check their transparency with you. Open communication goes a long way in business and is better than a partner hiding things from you. It not only leads to money down the drain but also severely impacts a business’s credibility, which is more expensive than anything else.

Why is SEO so expensive in Australia?

Do you wonder why SEO costs so much in Australia? There are several factors contributing to the high cost of SEO services in Australia:

Regional factors: The Australian market is competitive in nature with constantly changing industry trends. Keeping up with these requires constant efforts and time which drives up the SEO cost in the region.
Skill demand: Skilled SEO professionals are in high demand in Australia which increases their cost per hour and reduces their availability.
Tool costs: SEO campaigns aren’t cheap. They require various tools, analytics, and software to be successful which can be expensive.

How to maximize ROI from SEO investments

Small businesses in Australia can use SEO cost-effectively as well. To ensure you get the best results from your SEO trends, consider the following tips:

Set clearly defined goals: Define clear goals and track their key performance indicators [KPI] to measure success.
Prioritize quality: Focus on the creation of high-quality content and building organic backlinks for more credibility.
Address technical issues: Ensure your website is technically sound and optimized for search engines. Be quick to resolve any technical issues which may arise.
Monitor and Adapt: Continuously monitor your SEO performance and make changes as per the trends, ranking, and KPIs.

Understanding how to find and engage your target audience can enhance your SEO ROI. Learn more in our guide on How to Find Your Perfect Social Media Audience.

Common mistakes that drive up SEO costs

It is common to make mistakes when one is new to a field. But it is possible to avoid and learn from them if they are common. To prevent unnecessary hassle and spending keep these common mistakes in mind when working with SEO:

Black hat SEO practices: Engaging in unethical practices in SEO can lead to penalties and setbacks like the blacklisting of a website.
Low-quality content: While high-quality content may take some time to be picked by search engines, it is necessary to stay true to your brand. Creating poor-quality content can harm your website’s reputation and SEO efforts.
Link building: Additionally, it is necessary to link build properly and avoid low-quality link building for better credibility for your business.
Ignoring technical SEO: Neglecting technical issues can hinder your website’s performance and search rankings. It is necessary to keep solving technical issues as they arise as quickly as possible.

Furthermore, hiring an expert helps businesses avoid unnecessary spending by focusing on ethical and effective SEO strategies. They are well-versed with the do’s and don’ts of the field and can save the involvement of businesses in any illegal practices that will cost them more than they ought to spend.

Long-Term value of SEO

While SEO may require an initial investment, it offers a long-term return on investment. With its high-quality content and updated page optimization techniques, it generates sustained results over time. It is the best tool to drive organic traffic to your website and increase your brand’s credibility as backed by a study by BrigthEdge.

It found that SEO has the potential to increase organic traffic by up to 14.6%. Organic traffic leads by SEO to brand visibility and lead generation which in turn increases the brand revenue as well. Over time, the compounding value of a high search ranking can significantly impact your business’s success.

Here is our other guidance on selecting a web design agency that aligns with your marketing goals, check out our post on Choosing the Perfect Web Design Agency for Your Redesign.

Conclusion

Overall, there are multiple significant factors contributing to the answer of why does SEO cost so much? These factors range from the expertise of the SEO providers to the results derived by the SEO itself. It is a long-term investment which requires considerable time and effort. But it is worth every penny spent to find your footing in the business world. Australian businesses can maximize their ROI with their SEO investments by simply understanding the key drivers of SEO. They can easily make informed decisions with its results to grow their business in the right direction.

Remember, SEO is a long-term strategy that requires expert skills and dedication to quality to achieve sustainable results. If you would like to know more about SEO, its importance, or its employment you can contact Goxwide today. As one of the leading SEO providers in Australia Goxwide is equipped to guide you through your journey with SEO to ensure the best results possible.