How To Price Your SEO Services The Right Way

Struggling to price your SEO services? Feeling like you're either undervaluing yourself or scaring clients away? In this episode, we'll ditch the guesswork and get you charging what you're worth, without the awkward money dance. Let's unlock the SEO pricing code together!Transcript Summary00:00 - 00:19Gab introduces the episode on SEO pricing, noting it's a hot topic.Gelo agrees that SEO pricing is a highly discussed topic.Gab confirms they'll discuss setting up the right pricing for SEO services.00:21 - 00:48Gelo mentions the importance of pricing based on his experience, questioning why it's crucial for client satisfaction.Gab agrees emphasizing the need for correct pricing in SEO, especially based on the agency's current stage and experience level.Gab talks about factors like demand and costs influencing pricing, balancing quality and affordability.02:10 - 03:53Gelo discusses the use of terms like "low cost" effectively in SEO pricing.Gab adds insights on using such terms appropriately, reflecting on pricing strategies and client expectations.Gelo mentions charging consultation fees based on the value provided, discussing various client needs.Gab queries about how Gelo prices his services, asking if he uses value or ballpark figures.Gelo explains his approach, focusing on tailoring prices to solve specific client problems effectively.04:12 - 06:11Gelo asks Gab about determining the right pricing for SEO services and the different pricing models.Gab details common SEO pricing models like hourly rates, monthly retainers, project-based, and commission-based.Gab continues, mentioning his preference for hourly rates due to using time trackers, but noting challenges with freelancers and monthly retainers.Gelo shares his experience with a hybrid model involving retainers and commission, highlighting flexibility based on performance.07:02 - 12:01Gab discusses tailoring pricing to client needs, using examples like local SEO versus e-commerce SEO.Gab continues with insights on pricing structures for e-commerce clients, including affiliate models.Gelo shares his approach with retainers, explaining upfront costs and long-term benefits.Gab discusses red flags with clients who may disappear after work starts, emphasizing the need for upfront fees.Gelo asks about direct cost factors to consider when pricing services, discussing overheads and time management.12:01 - 14:42Gab discusses the factors influencing pricing in their line of work, particularly focusing on employee rates, whether for direct employees or outsourced work Gelo adds that tools also impact pricing, mentioning Ahrefs as an example of a costly tool affecting their budgeting decisions Gab emphasizes that different agencies have varied pricing models based on tools and other operational costsGelo discusses the challenges in pricing during discovery calls, where misalignment in budget expectations often leads to difficulties in closing projects Gab agrees, noting that while proposals are made with factors like initial audits considered, client reactions during pricing discussions are crucial indicators of project feasibility 15:07 - 18:07Gelo delves into project-based billing versus hourly rates, highlighting the importance of clarity and upfront pricing to manage client expectations Gab adds that markup strategies can be employed to ensure profitability without compromising on competitive pricing They discuss the perception of rates in different markets and the balance between affordability and perceived quality Gab mentions additional costs agencies must consider, such as taxes, internet, and electricity, which should also factor into pricing strategies Gelo emphasizes the value of expertise and indirect factors like experience when determining pricing models 18:07 - 20:09Gab and Gelo discuss how personal expertise and professional growth impact pricing decisions, referencing their own career trajectories and how rates change with experience They stress the importance of accurately valuing expertise in different roles within the industryGelo highlights the necessity for continuous personal development and aligning one's expertise with market expectations to maintain competitiveness 20:11 - 23:58Gab acknowledges Gelo's discussion on career transitions within digital marketing, emphasizing the importance of adapting and creating value from agency roles to specialized positions like SEO.Gelo expands on the experience-based transitions and value creation from agency roles to SEO specialist positions.Gab responds to Gelo's query about how market demand and competition influence pricing strategies.Gelo listens as Gab explains the factors like agency size and market research that influence pricing decisions in SEO consultancy.Gab discusses the variability of market demand across different industries, citing examples like dentistry and roofing.Gelo engages in the discussion on tailoring SEO services to meet specific industry needs and conducting thorough client-specific research.24:25 - 26:17Gab elaborates on effective methods to demonstrate ROI in SEO services, emphasizing the importance of forecasting and detailed reporting.Gelo asks questions about showcasing traffic improvements and conversion rates to potential clients.26:20 - 27:56Gab talks about the significance of ongoing client communication beyond initial pitches, stressing continuous updates and knowledge transfer.Gelo participates in discussing strategies for maintaining client interest and highlighting ongoing SEO benefits through consistent communication.28:09 - 29:57  Gab explains the process of computing ROI per keyword or investment, considering factors like customer lifetime value and subscription models.Gelo contributes to the discussion on regional market differences and customer behavior influencing ROI calculations.30:06 - 34:01  Gab responds to Gelo's discussion on pricing strategies in Canva at 2.5 pesos per year per person.Gelo explains the technical aspects of pricing per person, using examples and discussing conversion tracking.Gab acknowledges Gelo's insights on encouraging colleagues and students to create case studies demonstrating SEO ROI.Gelo shares a detailed case study where improved traffic and rankings resulted in reduced ad spend and increased sales.Gab discusses the importance of showcasing automation and traffic improvements through case studies to potential clients.Gelo adds to the conversation by explaining objections about pricing and guarantees in SEO services.Gab advises on targeting specific niches like dentists with tailored case studies to enhance sales pitches.Gelo continues the discussion on optimizing and presenting case studies effectively to potential clients.34:03 - 36:52Gab expands on handling objections during discovery calls, emphasizing the importance of transparency in service roadmaps.Gelo discusses pricing objections and guarantees, advocating for clear communication and client care during the sales process.Gab shares strategies for maintaining competitiveness while ensuring profitability, focusing on demonstrating unique value propositions.Gelo adds insights on balancing competitiveness through expertise and care in client interactions during discovery calls.36:54 - 40:02Gab discusses strategies for client engagement through discovery calls, highlighting the importance of understanding client needs.Gelo emphasizes the significance of asking pertinent questions to show genuine interest and care for the client's business.Gab wraps up with a reference to the movie "The Wolf of Wall Street" regarding sales techniques and engaging with potential clients.Gelo responds, recognizing the reference and elaborating on the concept of selling services effectively through understanding client needs.40:02 - 42:35Gab talks about strategies to increase chances of success during discovery surveys.Gelo discusses the difficulty in finding a comfortable approach and avoiding robotic responses.Gab mentions the importance of avoiding excessively high initial prices for new clients and understanding your own capabilities.Gelo shares insights on common red flags when pricing SEO services, emphasizing the need for genuine expertise and avoiding outsourcing without understanding the service.Gab discusses the balance between outsourcing and personal expertise, emphasizing understanding the work being outsourced.Gelo warns against letting ego affect pricing decisions and shares humorous anecdotes about industry legends.42:35 - 44:52Gab advises on the importance of investing in skills and self-improvement through courses and learning opportunities.Gelo shares personal experiences and discusses investments in self-improvement as critical for enhancing personal value and client trust.Gab continues discussing the benefits of investing in courses and skill development, contrasting it with mere expenses.Gelo shares his approach to investing in education and skill enhancement, highlighting the value it adds to his services and client relationships.44:52 - 46:46Gab mentions a Facebook post about freelance earnings and the importance of both technical skills and marketing ability.Gelo shares closing remarks about their SEO discussion group on various platforms, encouraging listeners to follow and engage.