How to Create Your SEO Budget

21 Jul

seo budget

This is one of the toughest challenges for all businesses. How much to spend on the search budget?

If you ask me, I would of course say spend it all on Internet marketing! In all seriousness, this task shouldn’t be taken lightly. A lot of companies adjust their budgets to engage in activities that are proven to work.

As part of the organic process, how can you determine the value of what each phrase is worth? For retailers, this is an easier equation to figure out since the margins are already set and as long as enough product moves, the spend will make sense.

But what if you sell a service? And as part of that service, the final price is determined by what the customer orders?

You can start to see the myriad of potential ways to set the spending cap for your company.

While this is in no means a perfect formula, I’ve helped many businesses start small and grow their budgets as they see the success of their organic rankings improve which lead to more conversions.

One metric used is determining the value of a sale. If you sell specialized computer software (custom installs/support/etc), one client per year easily covers the cost of doing search for that year. But then, how many keyword phrases should make up the campaign?

From a money perspective, the online marketing spend *should* be one of the biggest components of any marketing budget. But, many marketers are still schooled in the belief that flyers, Yellow Page listings, Billboard advertisements and other non-accountable ways to spend money are a safe bet.

So keeping that in mind, if you do have a marketing budget, you should set aside 20% for Internet marketing. A good balance would provide 10% to PPC and the other 10% to organic efforts.

If you’re looking for concrete numbers, and good search company will need anywhere from $500 – $1,500 monthly to be successful with an organic campaign. There are many variables that come into play for this number, and you should really be thinking of an average of $500 per keyword per month.

And I can’t stress this enough. You have to give your seo firm time to achieve results. Three months of an organic campaign *might* get results. If you can’t commit to at least a six-month contract, you should bother getting started. The organic effort takes time to see the results and that can’t be forgotten when contracting organic seo efforts.

Typically, the more you can spend the faster you will see results and the more phrases you can go after. Be sure to measure the results as they occur so that improvements or changes can be made to improve your bottom line.

That’s the reason why you’re doing this right?!

Thanks for reading,


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