June 4th, 2008 by Richard Lee
SMX Advanced – Seattle 2008 – Search Marketing Payment/Pricing Models
SEM = SEO + Paid Search
Most prices are firm to avoid haggling and to offer consistent and fair prices
5 Different SEM Pricing Models:
1) Retainer Based (6 to 24 month contracts)
2) Performance Based
– Delta change (% of change in sales, leads, traffic)
– Commission Structure
3) Fee for Service Model
– Project based
4) Hourly Consulting
5) % of Ad Spend (10 to 20%, some at 12.5%)
Setup Fees i.e. $25K+ upfront or phased approach $8K for each phase
SEO Core Services:
1) Extensive Keyword Research & Analysis
2) Keyword Placement & Site Optimization
3) Inbound Link Campaigns/Reporting/Social Media
4) Other Custom Services
– Web site audits
– Negative keyword reports
– Web analytics
– Monthly Mainenance
– Copywriters, agencies, web dev, etc.
Different Levels:
– New domain vs. established site vs. past problems, etc.
Additional Agency Misc Info:
Process:
Consult
Research
Evaluate
Analyze
3 Agency levels:
Enterprise
SMB
Boutique
Types:
Train you
Do for you
Hybrid
SEM Agencies add value by using SEM (PPC + SEO) to research new areas to grow your business
i.e. Using the right analytics, a SEM agency helped Martha Stewart find a large amount of people searching on “pale green buckets”, which then helped shape offline / magazine advertising. New consumer trends are a natural byproduct of the strategic help from SEM agencies.
SEM = drives all channels of marketing mix (research & test messaging)