SEO Budget Plan: How to Budget for SEO in 2024?

For optimum spending and maximum return on investment, budgeting is a great idea. 

In this article, we show you how to create an SEO budget that can get you the maximum output!

What is the Average SEO Budget?

The average SEO budget is around $500 per month. Companies usually spend 5-10% of their marketing budget on SEO. 

But the cost of SEO depends on a ton of things. Based on their specific needs, companies spend even $10k+ per month.

Surprisingly, more than 50% of companies either do not have a budget for SEO or are reluctant to spend for SEO, which is a terrible practice.

This brings up the question- How much should you spend on SEO?

$500-$1000 per month is a good amount to start like the average company. The rule of thumb is that spending at least 5% on SEO up to 10% of your revenue is ideal. 

This is a very small amount in reality; depending on your needs, it may go higher. 

How to Create Budget for SEO? 

No matter how much you decide to spend on SEO, having a well-thought budget can help you –

  • Track your ROI.
  • Get the maximum use of your resources.
  • Make cost-effective, long-term investments.

So, here are 7 steps you can follow to create the best SEO budget for your business.

Step #1: Set Your Goals

The ultimate goal of SEO is to get more revenue. 

But with SEO, there are multiple roads that you can use to reach your goal.

So, before you create your SEO budget, you need to figure out what you want to focus on. For instance, you can focus on brand visibility, generate more leads, increase your organic traffic, or get more conversions.

Having a specific goal in mind will help you devise a killer strategy for your SEO campaign.

Step #2: Consider the Competitiveness of Your Industry

You may need to spend some extra cash if you are working on a highly competitive niche and vice-versa.

So, before making an SEO budget, take a look at the industry you are focusing on. In a highly competitive industry, it will be harder to get results. Thus, you will need to deplete more resources and as a result, you will need more money.

Step #3: Consider the Complexity of Your Project

See how your website is doing in terms of SEO. How much do you need to change for improvement?

If you are starting a new brand or the online presence of your business is in shambles, you will probably need a handful of money.

However, if you’re already quite established and just need a few tweaks here and there, you can probably get away with spending less. 

Step #4: Pace of Growth

While SEO can be a long-term investment, you can roll out the strategies quickly if you want. 

That’s why it’s better to set a timeline for your SEO campaign. Depending on how fast you want to get the job done will certainly have an impact on your SEO budget.

Obviously, the faster you want the job done, the more resources you’ll need, which will translate into a more hefty budget.  

Step #5: Identify the Important SEO Tasks

Find out which type of SEO services aligns with your goals. 

For example, if you own a local business that wants to increase your brand visibility, you should create a budget focusing on local SEO. 

Or, if you are a global brand that wants to get more sales, set up a budget for e-commerce SEO. 

Here are other SEO services that you can focus on depending on your needs:

  • On-Page SEO: Works on keyword research, content creation, etc.
  • Off-Page SEO: Works on link-building, leads generation, etc.
  • Technical SEO: Works on speed optimization, mobile responsiveness, site structure, etc.

Step #6: Allocate Resources

Now that you know which part of SEO you need to focus on, you can allocate your resources accordingly. 

It’s best to focus the bulk of your efforts on the most important factor of your campaign, then a smaller budget for optimizing it and the rest of it for maintenance.

For example, if you are a blogger and have a $100 SEO budget, you could spend 70% on creating new content, 20% on link-building, and the remaining 10% on updating old content. 

It’s also called the 70-20-10 rule, which is used in lots of different industries, including digital marketing. 

Step #7: Track and Adapt

Creating a budget is simply not enough when it comes to SEO. You must also track your ROI and adapt accordingly.

If everything is going according to plan, then great! You can reallocate your resources to different areas and try to get even better results.

If your plan fails, there’s nothing to worry about either. Take a step back, find where you went wrong, and reshape your strategy.

Get a Free SEO Budget Template

Wouldn’t be great if you had a sample SEO budget to follow while making your own? 

To make your SEO journey easier, you can use our SEO budget template completely free!

Calculate ROI From Your SEO Budget

Once you get fixated on an SEO budget, you need to get an estimation of how much return you can get from that. To that end, you can use our SEO ROI calculator, which will give an idea  

Get the Most Out of Your SEO Budget: Agency vs In-House

If you are using SEO for your business, you are either outsourcing it to a freelancer/agency or you’re doing it in-house. 

Based on the SEO path you have chosen, here are some hacks so that you can get the most out of your SEO budget. 

For Agencies

Opting for an agency can be a great decision if you have a load of SEO tasks with high demand. But if you do go for an agency, make sure to- 

  • Choose the Right Agency: Choosing the right SEO agency that fits your needs can make all the difference in the world. A skillful and ethical agency will take your load off your hands and deliver the best possible result.
  • Get Regular Reports and Analytics: Keep an eye on your SEO agency by asking for regular updates and reports from them. This will help you keep track of your ROI and measure your success. 

For In-House

If you have enough expertise and experience, you can also hire SEOs for in-house optimization. In that case, you need to-

  • Focus on Quality Over Quantity: Always focus on quality over quantity when it comes to SEO. Be it the number of contents or backlinks, a higher quantity is never the answer.
  • Choose Your Tools Carefully: You can find a thousand SEO tools for different purposes. But investing only in the right SEO tools would be a smart move. Try to find free alternatives to premium tools that can save you a lot of money.
  • Outsource Tedious Tasks: Instead of using your manpower on trivial tasks, it’s better to outsource them. You can then use your resources for more important tasks.  

For example, if you need to reach out for link-building or write a guest post, you can hire a freelancer for a cheaper price.  

  • Invest in R&D: Not every SEO strategy works for everyone. That’s why, investing in R&D to find new techniques and strategies specific to your business can be the game changer. 
  • Stay Updated on SEO Trends: SEO is volatile and constantly changing. So, if you cling to older techniques, it won’t get you anywhere.
  • Be Persistent: As we have already said, SEO takes a long time to take effect and there is almost zero chance that you will see immediate results. You shouldn’t be disappointed, keep up the good work and within due time, you can enjoy the fruits of your labor.

All That’s Left Now

With the budgeting now done, all that’s left is to spend it accordingly.

One thing you must keep in mind is that SEO can be expensive and it’s worth it. You may find “SEO experts” that offer you cheap solutions, but such tactics will do more harm than good. 

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