SEO can increase monthly recurring revenue for your agency. Whether your agency is a digital marketing agency, a website development agency, or even a public relations agency, SEO can help. And I’m not talking about doing SEO for your own website, although that can help increase your visibility. I’m talking about adding SEO to your roster of services.
Offering SEO services to your existing and new clients is a great way to substantially increase your agency’s monthly recurring revenue and your overall profit margin. Let’s look at the MRR metrics for SEO services.
- You should be able to sell SEO engagements for a 12-month period. SEO is slow and gradual to show results, but the gains at the end of the initial period will often be substantial. Your ideal prospect for SEO services should be patient and willing to invest now in a process that will pay big dividends in the future.
- The monthly revenue formula should start with defining all of your expenses involved with delivering SEO services to your client. Make sure to include employee time in the calculation of your costs.
Be aware that your team will have to invest a substantial amount of time at the beginning of SEO services. You will have to do some tasks that will take some time to complete, like a competitive SEO audit, persona or target audience definition, keyword research, content strategy, etc. Overall you may have to do 70+ tasks in the first 30 days for a new SEO client.
Since your first month’s expenses will be much greater than the following months, you have to make a decision. Do you charge more for the first month or do you spread that cost across the 12-month engagement period? Both ways can be effective. It will really depend on the client.
One strategy can be to charge more in the first month but offer to spread that cost across all 12 months if your prospect hesitates when it comes to cost.
- The actual monthly revenue formula is pretty simple. It’s the sum total revenue from all recurring clients divided by the number of clients. As you add and lose clients, the number can change so it’s a good idea to analyze the monthly recurring revenue number and identify the causes when you have increases or decreases.
You can set a goal for your monthly recurring revenue and track it just like you track your agency’s other financial metrics.
SEO services are great for increasing an agency’s monthly recurring revenue because clients understand that to have success with SEO you need to be putting forth an ongoing effort. This is a point that you need to emphasize early and often when you are having discussions with a prospective client about SEO service.
When your agency is built on project work you spend a lot of time selling the next project. The MRR model allows you to spread out your sales efforts a bit because you’re not constantly finishing projects and then starting your sales efforts over again. It can give you a bit of breathing room.
The big challenge for most agencies when it comes to offering SEO services is the lack of expertise and experience with SEO. SEO can be scary because it changes all the time and you really have to stay on top of what changes Google has made to its algorithms. And these days, those changes happen very frequently.
Peak SEO Training can help by building monthly recurring revenue departments for agencies. We’ll help you get the right people in place, we train them, and do live coaching. Plus we give you all of our systems including documents, reports, systems, strategy, and detailed task lists, everything you need to start selling SEO or PPC services. Call us to find out more: (973) 770-4668 ext 101. Or click here to schedule a discovery call.