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Hey, guys. This is SEO Floyd, and in this video we are going to talk about how to price your jobs for your SEO clients. This is very important for a variety of reasons: Number one, it's important that we have a logical method for determining what prices to charge for the services that we offer. It's also important for us not only to be able to get the client, of course, and justify him, but to be able to keep the client.

Most clients are new to internet marketing and online marketing, and they don't really understand what you do and how you do it. One of the things that's very important that you do is that you are able to make them clearly understand the value that you are bringing to their organization. In other business models like pay per call, pay per lead, things like that, the outcome is a lot more direct, and that's how you get paid, but in Client SEO the way that I'm teaching you, typically you're going to be paid a monthly retainer fee basically forever, and so that's an expense that's going to come out for them just like the electric bill and the phone bill, is how I think that most people treat it, and how I want to be treated as the provider. I'm just another piece of overhead for their business, that just comes out, but we want to make sure that we have some logic behind our pricing.

There's a couple of ways to do this so I'm going to throw a couple things out, and then I'm going to show a specific method. One thing that you can do to asses your local market is just to go out and see what other SEOs are charging. If you are in a market that has some population to it, if you're in a fairly large city, then you can simply makes some phone calls and find out what other SEOs are charging. You may have to be a little bit tricky with this, ethically. You way want to have maybe a relative or friend call, and just say hey, I'm a local roofer, and I'd like to know how much you charge for your services. That's going to give you one bit of information on kind of what the market will bear in your area. That's one way to go about it, or you can just simply visit some websites of some local SEO companies, or web design companies that offer internet marketing; some of them will have packages and prices right there on the website.

Method Number One for pricing, which is probably not a bad idea, is to go out and do just a little bit of competitor-slash-market research, and see kind of what things are going for. The first method, though, that I'm going to show you, and the one that I use most of the time, is my prices are going to be based on the cost-per-click value of the traffic in ad wards. There's a lot of sites that can give this information to you, but the site that I prefer is S E M Rush dot com, and if you are new to SEO this may be a new site to you, but if you're not new to SEO you probably already have an account here. If you don't, they do provide limited information with their free account. Again, you can go to Fiver, and get accounts burned for you for five dollars so you don't have to spend a whole lot of money to do this.

I went ahead and logged into a Pro account, and so let me show you what we're going to do. I'm going to do this kind of slowly, and I hope this makes sense to you. What I'm going to do I this: I'm going to give you an example, and again hopefully all this is going to make sense; this is just one of the ways that we're going to do this. You may have to watch this a couple of times, but I'll try to give you a couple of examples so it will work for you.

Let's go ahead and go with something I know has a little bit more data. We've been using Dallas and Frisco because that's where I'm at. Again, let's go ahead and go with the plastic surgeon, plastic surgery; I'm very active in that niche here locally so I know we're going to get a lot of results. When I type in "Dallas Plastic Surgery" as the keyword in SEM Rush, it's going to give me lots of information. Some things I want you to be aware of: the default if you're in the United States is going to be US Google, and obviously that's what you want. There are some other versions, though; as a matter of fact, it looks like there's about 25; so if you are in one of these other countries, make sure that you're in the appropriate version. If you're an international company then obviously you're going to want to choose each version so you're going to have a larger report to do.

Since we're doing local ranking here, I'm going to stay with the US, which is the default. I've typed in "Dallas Plastic Surgery," and what this is telling me is that the cost-per-click for this keyword is $8.19. That means that when people go to Google and they type in "Dallas Plastic Surgery," so lets just go ahead and do that, let's type in "Dallas Plastic Surgery," you see these ads up here, Dr Hackney, Dr Bogden. When you see all these, that means that every time someone clicks on this ad right here, this person, so in this case it's Dr Hackney, he's a really big plastic surgeon here in Dallas, and he has a really good SEO, by the way, Dr Hackney is going to pay eight dollars every time someone clicks on this, $8.19. This number will vary, but on average when someone types in "Dallas Plastic Surgery," and they click on Dr Hackney's ad here, he's going to pay approximately eight dollars for that.

Now we have a value for that keyword. That keyword is worth $8.19. Let's go down here, and we see that Dallas Plastic Surgery, we're staying with the same term, Dallas Plastic Surgery has 390 hits per month. The average person who is number one organically for Google is going to get roughly between 45-ish- and 50-ish percent of the clicks on that page. For easy math, I'm going to use 50, just for easy math. You may want to estimate down to 40, but when you see the ROI I show you later it won't make much difference. If we get him number one for keyword "Dallas Plastic Surgery" he should get approximately half of this 390 hits; so half of 390 is going to be about 200 hits. Math's not my strong suit; let's just say it's 200. He's going to get about 200 hit's per month.

200 hits per month, and these cost $8.19 a piece, and so that means that we take the 200 hits that he gets, and multiply it by the $8.19 per month, and let me go ahead and pull up my handy-dandy cheat sheet here, and let's go ahead and do this out. The example that I'm using, and I'll go ahead and put this in so you guys can go back to it, is Dallas Plastic Surgery, and I'm using SEM Rush dot com. The ad words cost per click is $8.19. The average monthly traffic for the keyword is 390 hits a month. Therefore, and number one gets we'll just say 50% for the traffic, and this is based on public information. You can use 40 if you want, and that's fine.

What we're doing is this: We're saying that if we can get him number one for this, that he's going to get approximately half of 390, and for easy math we said that was 200, and then we're going to multiply that by $8.19, and then that is going to tell us that the traffic value of that is going to be in one second when my calculator pops up, $8.19 times 200, $1638. What we're estimating now is that if we went to a plastic surgeon in Dallas, and said we will rank you number one for Dallas Plastic Surgery, that the approximate value of that per month is $1638 per month. Any plastic surgeon in Dallas that had a website, and they weren't on Google at all, wanted to get that many hits, 200 hits, then it would cost them $1638. That's what the traffic value is worth.

As we're doing this what we need to do is take the traffic value, and then we need to divide it by what we want our ROI to be. We need to show an ROI. If they could just go buy it for $1638 then why would they pay us to do it? They could just go right to Google. Let's say that we charged them 40%. If we say we're going to charge them 40%, then I should not have closed my calculator. Bear with me, guys; math is not my thing, although statistics is actually my thing, but I do rely heavily on calculators. 655 bucks.

If we wanted to give him an ROI at 40%, if we were going to charge him 40%, then we would charge him $655. That means that we're charging him 40% of what Google would be charging him. Does that make sense? He's saving 60%, in other words. Obviously $655 is not a whole lot of money; obviously we want a lot more money than that; so what we're going to do is take this formula and we're going to apply it for anywhere from three to five keywords, is what I will typically do. By the time we're done with that we're going to have a number that's much higher, and we're also going to have a number which is much more achievable, much more manageable. This is the basic method for doing this. I want to make sure you understand kind of what I'm doing with the math, here.

One thing that I do want to point out, and this is big because this is something as far as a conversion element for getting people away from paying for Google Ads, and that's something we cover, a Client-Getting method we cover, in another section, is finding people who are getting Ads, who are paying for Ads, and converting them into organic. On average, and this is public data, also, on average the cost-per-click ads on a page only get 15% of the total clicks. That's all they get. Do you see here where I said if he wanted to get 200 hits a month that it would cost him $1638? The fact is there's no way that he can do that. There's no way that he can do that because, again the average monthly traffic for this is 390, so what that means is we take 390, and we multiply it times 15%, and what that means is that 58.5 is the total number of leads that Ad Words is going to get for the entire month for this.

Let me say this again to make sure this is making sense: This one keyword gets 390 hits per month total; however, average Ad Words total for the whole page only gets 15%; so what I'm saying is if you look at this page, these advertisers here, all of these, all of these ads together, together, only get 15%. That means all of the people here that are bidding on this keyword, if they were only bidding on this keyword, then altogether, going back to our math, they would be splitting a total of 58 leads among them. That's the maximum.

Two things: It's not just that we're going to provide a better ROI than Ad Words; it's that we're going to provide much, much, much more traffic than they could ever buy with Ad Words. I hope that that makes sense to you. I hope that that makes sense the way that I've done that.

A couple of things that I like about this method, and by the way again this is the primary method that I use: Number one, when I price this out I like to actually bring people to this website; so I'll bring my laptop to the presentation, and I'll actually pull up SEM Rush, and I won't login, I'll use the public account, the free one; what this does is this shows people that I'm logged into a public resource that they can also log into; so this is a trust factor, this shows them that you're using information that's publicly available. What a lot of kind of shady SEO companies will do, and even some of the larger SEO companies, is they will bring their own data in, our data says this and that, and of course they're playing with numbers most of the time; there's lots of unscrupulous people in our industry.

I want you to bring them here, and you can actually show them that SEM Rush is public data; this is not something I can manipulate somehow; I'm just showing you what the data says, and this gets you a good buy in typically from your client. This makes it a lot more reliable. It makes your quote a lot more reliable.

For an average client, what I'm going to do is I'm going to go through, and I'm going to pick a handful of these keywords, and I'm going to get those numbers so I can come up with a good quote. One of the things that you want to make sure that you're doing, like in that example: the reality is it may be hard for me to get number one. I may never get number one. I shouldn't say that. Let's just say that you can't get that, or you're not sure if you can get that, but you can get number two, or three, or four; you're going to get some percent of this. What you want to do is you kind of want to get that monthly egg up to what you want it to be with however many keywords that it takes. Number two gets about 40-ish percent; number three gets about 30-ish, 35 to 40%. If you can get them in the top three that's really where you're going to see your return on investment, is in the top three.

I hope this made sense. Let's say that I want to make 5k a month from this client, from this plastic surgeon client; then what I'm going to do is go in here, and I'm going to look through these numbers, and I'm going to find them if they exist. That is how I price.

Let me show you something that's going to give you also kind of an idea a little bit of how realistic that's going to be, to see if you're going to find any kind of value in here. Let's go down here, and let's see. Let's go ahead and go to Dr Rorik's site. Right now you see that Dr Rorik is getting about 28k a month, that's what this number means, $28,000 a month in search engine traffic. What you can do is you come down here under Top Keywords, click View Full Report, and this is going to give you the list. Do you see the percent of traffic? 5% and 5%, that means 10% of his traffic is coming from being number one on these keywords. What you can do is you can take one of the top people in the market, and kind of see where their traffic is coming from to see how realistic your predictions are.

His monthly search engine traffic is worth $28,000. These two keywords right here are about 10% of his traffic, which means these two keywords here are worth about $2800. Does that make sense? He's getting about $28,000 a month in search engine traffic, and these two keywords alone, "Dallas Plastic Surgery" and "Dallas Plastic Surgeons", are each worth a little more than five; so that means this 10% here is worth 10% of this, so about $2800. I want to show you this because initially you may want to shoot for some of these lower-hanging fruits. You find five; these five here are a little less than three percent each so let's say three of these are three percent each; this is about 10%; so if you can rank him number one for these three terms, and these together equal about 10%, then if you can rank him number one for these three terms, and these are very low search volumes, then it should be worth about 10%, about $2800.

I hope this is making sense to you. On the one hand I kind of showed you how to price using pay-per-click, and on the other end I kind of showed you how to a little bit look at a competitor maybe to see how to find some of those keywords.

Let's do another one as an example. Actually, let me go over this one more time. Keyword: Dallas Plastic Surgery. The cost per click is $8.19. The average traffic is 390. We're estimating that number one gets 50%, which is actually a little bit high, typically, but just for easy math; then so he'll get about 200, roughly half of this 390; so at $8.19 a hit that's worth about $1638. At $1638, if you divide that by 40%, which means you're giving him a 60% savings, then you would charge him $655 a month. I'm hoping this is making sense. If you wanted 5k a month, then you would need to go back here and you would need to find some keywords; so we did "Dallas Plastic Surgery"; so we can go "Plastic Surgery Dallas", "Dallas Plastic Surgery Institute", there's a bunch of them here. We would want to go through these and look at the cost-per-click, and see what we could do to hit that 5k. I hope that's making sense.

Let's do another one real quick. Let's do one that's got big numbers: Mesothelioma Attorney. "Mesothelioma" is one of the highest cost-per-clicks that exists. Mesothelioma is a form of cancer, it's lung cancer, and you get it by doing certain things, and there's something like billions of dollars in settlements that are just waiting; so if you're an attorney, and you find someone who qualifies for mesothelioma, then you basically have a whole bunch of money.

Let's see here: that's interesting, maybe I spelled it wrong. All right, good. Just put an identifier in front of it, an area identifier. That's good. Great. Let's see, except there's no cost-per-click value of this. Sorry guys, this is what happens when you do things live. Let me try this again. Let me try "Dallas Mesothelioma Attorneys." Here's much better. I think I was spelling it wrong, guys. I apologize. The keyword is "Dallas Mesothelioma Attorneys." The cost per click is $326.52; so it's huge. It's one of the more expensive cost per clicks. Again, every time someone goes to Google and types in "Dallas Mesothelioma Attorneys", every time someone clicks on this or this, or this, these companies get charged $326.52. Again, this is one of the higher ones. Let's do our math again. There's only one here, but hopefully this will still work. We can do more on this in the forum if we need to. I can do more training on this method if I need to.

Keeping with what we did before, the cost per click is $324.52; so in here the cost per click is $326.52. The average monthly traffic was 170. Again, number one gets about 50%; so 170 divided in half is 85; so we're going to put 85 here, and then we're going to multiply it by $326.52, and $326.52 times 85 equals $27,754. That means that if you were to get a client number one for "Dallas Mesothelioma Attorneys" that that traffic would be worth $27,754 a month. Again, let's take $27,754, and let's say that you only wanted to charge them 30%; then, at 30%, your amount would be $8326.

Again, if the value of a number one is approximately 50%, so the total is worth $27,754, if you charged them 30%, you could charge them $8326 a month, and they'd be saving 70% over what they would be paying Google. This is a nice $8K account. I hope that that makes sense to you guys. Obviously when you're doing this with locals you're going to get lots of smaller numbers. Sometimes you are going to find numbers that are really, really small that don't really justify using this method, and when that is the case I'm going to cover that in another training video.

To clarify, step one would be to come to SEM Rush. I'm sorry, step one, again, could be the competitor research where you're going to make some phone calls, and ask around to see what some other people are charging. You might even want to try some national companies like SEO dot com, and call them, and pose as a potential client, and see what they're charging. That's number one.

Number two would be go to SEM Rush dot com, type in your keywords, find out the cost-per-click value, find out the volume; then estimate the number of hits you could get for that volume, multiply it by the cost-per-click price; that gives you the value monthly, and then you will charge some percentage of that. Obviously the larger percentage that you charge of the cost per click, the more money you make, but I typically keep mine at about two- to three-times the ROI because then that number of people don't shop you. Let me give you an example: Let's say that the cost per click, the monthly value, is $15K a month; I will typically charge about $6-grand for that, so slightly more than a third. What happens is when you're charging those kinds of numbers when they know that they should be paying 15, and they're paying 6, then when other marketing companies call along, and Yahoo Local, and all these other yahoos come along and try to steal them away from you, they're not even talking to them, typically. It's as much a retention thing as it is a money thing.

I make a little bit less off of each client, but I don't lose them ever; so that's worth it to me because most of my work, as I've mentioned in other videos, is up front; most of the vast majority of the work that I do for my clients is in the onboarding, and in the first month or two of their campaign. After that, there's very little work. I try to do everything I can to keep them. I hope that this has been clear for you, and if not please feel free to shoot your questions into the forum. Again, this is SEO Floyd, and I hope you got some value from the training. Thank you.