There are pros and cons to performance-based SEO campaigns. Performance SEO is when an agency charges a client for performance, rather than the number of hours they spend on their campaign. This type of service can be beneficial because it incentivises the agency to do more work to reach performance targets, but performance-based SEO also has its downside. In this article, we will discuss both pros and con’s so that you can decide which type of service would best suit your needs!
What is a performance-based SEO campaign and how does it work
The idea of performance-based SEO campaigns is straightforward. Previously known as “Pay for Rankings” programs, they are based on the fact that the agency will be paid solely when results are delivered (or a large sum of monthly fees withheld until then). That’s fantastic! If agencies believe in they’re SEO capabilities, aren’t they willing to put their money where their mouth is?
Many performance-based SEO companies are popping up all over the UK, but it’s important to understand how they work. Usually, performance-based SEO campaigns will have a sliding scale of payments that correlate with ranking positions on search engines. The higher you rank, the more you pay; if your website never ranks at all, you pay nothing.
The benefits of using a performance-based SEO campaign for clients
There are a few reasons why performance based SEO may be appealing to clients.
First, it allows them to control their costs and only pay for results. Second, it can help them benchmark performance so they can track improvements over time. Third, tying payments to ranking positions, it provides an incentive for the agency to achieve better results spending more time than on a traditional retainer.
The most obvious benefit is that performance based services can help an agency increase their cash flow. Agencies typically do not like to tie themselves into long term contracts because these ties limit them from taking on new, potentially high-value clients; performance based campaigns allow them this flexibility with fewer risks
As an agency, performance-based payment can have a number of positive implications. It reduces the costs associated with working on client accounts as there is no need to spend time doing fixed price reports or billing hours spent on client work. In addition, it’s often easier and faster to achieve results
Lets summarise the positives:
Low initial investment
most companies that offer performance-based SEO have a low initial setup cost. The SEO company will need a good keyword research tool, like SE Ranking. So they have an initial outlay to set your campaign up.
The agency’s revenue is based on its performance. So there’s no way around it: They have got to make it function and succeed. As a result, you can relax knowing that the process will fulfill your expectations.
You’re not tied into a contract
Most performance based SEO companies have no contractual tie-in, whereas in most traditional agency they have 3 or 6-month contracts. here at Simple Advertising, we have no contract for either option.
The downside of performance based SEO campaigns for clients
While performance based SEO may have some benefits for clients, there are also several potential problems that they should consider before signing up for such a campaign.
First, it can be difficult to find performance-based companies that are truly transparent about how they work. There is no standard or regulation for performance-based services, so the client should be extremely diligent when vetting potential providers
Second, performance based campaigns can have a high turnover rate of agencies because there are other performance benefits involved in being at the top of search engine rankings. If performance-based campaigns are your only source of revenue, you’re at the mercy of search engines rankings.
Third, performance based models don’t take into account other factors that influence website traffic or conversions. For example, changes in social media trends can have a huge impact on visitor numbers without any corresponding change to SEO performance
Forth, performance based SEO has been associated with black hat SEO tricks “not sanctioned by google” to achieve quick rankings but can ultimately in the long term pull your rankings down.
Lastly, performance-based SEO can be risky for clients if they are not careful. If an agency fails to deliver on its promises, the client may end up paying a lot more than they bargained for.
How we charge for performance based SEO
PFP SEO costs differ from those of traditional SEO in that they are based on the results rather than a monthly fee. You pay only when you obtain the results, and there is no additional cost involved.
If you’re looking for a way to get more customers in your door, performance based SEO might be the answer. Our team of experts will be more than happy to walk you through our process and answer any questions or concerns that come up during your research process. – just email us today!