Ranking is dead, they rank in one location and the may not rank is a different location.
Companies should never enter into these contracts with a SEO (expert, everyone is an expert here) as SEO professionals will then pull the limits for ranking, which may be bad for you. http://www.dawebmarketing.com/kb/clients/choosing-seo-company.html Do read and show this to your client.
I generally recommend this model for charging your clients:
Pay per performance:
1) Fix minimum operational costs - Since we hire a lot of people and need to pay them, we will have to charge a basic fee. I generally suggest $250 - $1000 based on the work (You can go higher as well). For this $250 - $1000+, lay down the work deliverable very clearly and explain the reasons why you are doing these work. Let the client verify the work on different forums.
2) The profit should come from the sales. I had divided the pay per performance into few categories
- Search Engine Organic: around 5% - 10% for each conversion.
- Search Engine Paid: around 2% - 5% for each conversions.
- Affiliate marketing: around 3% - 6% for each conversion.
- Referrals: If those referrals are created because of your efforts, 5% - 10%.
- Direct: Upto the client, can be between 1% - 10% based on the offline campaigns that are running.
In case the clients don't have online sales, then there can be traffic based evaluations. Per 500 visitors, $__.
How feasible to opt for a Rank based model or should I propose them a traffic based model and why?
Because, this will help you think in the right direction. You will be able to think of campaigns that can become viral. Focusing on ranking is letting you use your brain for the best possible web marketing.
Ranking based payment is just a model where it becomes difficult for a good SEO company. In case if the client is rigid, go for it.
Look at the competition and the market, prepare an excel sheet and see your efforts and returns, charge them good money.
The best part of SEO industry is that there are no fixed pay models and the worst part of SEO industry is that there are no fixed pay models.
I have only concerns. If you need to work for 6 months to make them rank for some of the keywords then who will pay your operational costs? What happens if the clients leaves within this 6 months?
Answer to your question lies in: Competition of the keywords.
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