How much should you be charging for local SEO? Honestly the formula is very simple. The image on the right shows how we price based on a locational competition times by industry competition formula.
For example in the UK there are multiple cities under 300,000 in population. Generally speaking these cities can be very easy to rank in. Building a local business to 7 figures through smart digital marketing is not only possible it’s also likely and relatively easy. As a result this only gets a 1X multiple.
Similarly with the industry if an industry is very uncompetitive or has slim profit margins we give this a vote of 1X as the competition are likely NOT spending money on digital marketing, making ranking easier to achieve. This is also limited by the total amount of revenue we could generate a specific company by ranking for all locational keywords. For example a scaffolding company in a city with less than 300,000 people probably has a total market share cap of around Â£500,000-1M a year in revenue. As a result this would receive a 1X.
Things start to get a little more complicated when competition increases.
Location wise it is always based on population as this is a relatively easy measure of how competitive a set of keywords are. For example London will always be more competitive than Cardiff and Cardiff will always be more competitive than Salisbury for example. Population is a very broad measure of supply and demand in a city.
But industries get a bit more tricky.
Generally you want to base your competition of industry metric on what the SERPs look like for that specific region. If you’ve been around for a while then you’ll automatically know what is higher competition just from the type of industry the potential client is in.
A Few Examples:
Remember this is just how I price local seo services and if you need clients or don’t have 100% confidence in your services then you shouldn’t be charging what you can’t get a 1000% ROI for. When we first started these prices were a lot lower but as you scale you want to squeeze out any potential bad or unprofitable clients and instead just work with the people who understand business and want to scale their business. This is actually why saying NO to leads is a very very good thing in the long term.
1.) Coventry based Gardener.
Coventry is a city with 315,000 people, giving them a 2X multiplier for the location. Gardeners are generally a less competitive industry and as a result get a 1X on the industry giving a total multiplier of 2X.
2.) Manchester based Law firm
Manchester is a city with a population of 2.5 million people according to big G. As a result they have a 3X multiplier in the locational category. Legal firms are one of the most competitive local industries. As a result they receive a 3X from the industry column and hence sit in at 9X on our pricing model.
3.) Salisbury based Coffee Shop
NO quote – Because the total market share could not realistically result in a 1000% increase from the initial investment. Based on our minimum amount of Â£1,000/month this coffee shop couldn’t actually make a good enough return even once ranked and hence we wouldn’t take on the job (neither should you.) (We also don’t work with people in the food industry but that’s just a personal preference.)
That’s how we calculate local seo services and how much to charge. It’s something that has done wonders for us in actually delivering on results and not under or over pricing. One aspect I would note is the top level of 9X multipliers. Anything in London should be custom quoted as London itself is a mini country and hence gets into the range of national SEO, so just be careful if you get a London firm in a highly competitive industry and you only quote them Â£4k/month. Beware of the competition as they do probably spend 5 figures a month on SEO or digital in some industries.
Some people have asked why I charge so little for local SEO when clients are very small. Say in Cardiff for example. One of the reasons is because I want to have a good image here in the city and want to help as many smaller businesses as possible. But the other is I already know how and where to get really good links. Take Cardiff gov for example you can get your business listed here and it even gives you a DOFOLLOW link back to your website. Amazing! That’s knowledge that will have a nice impact and I do not need to re-research when a new client comes in from Cardiff (or whatever city you are used to ranking stuff in.)
Thanks for reading if you have any questions or comments hit me up on Twitter.