Many people believe search engine optimization (SEO) is like getting free traffic to their website. That's not quite right. Think of SEO as prepaid traffic that takes a while to kick in. In this post, we will discuss the real cost of ranking high on search engines. You'll also learn why it's worth it and how to plan for it.

The Truth About "Free" Traffic

It's a myth that SEO is free. Agencies might tell you it's free, but then they'll charge you thousands of dollars a month. Even if you do SEO yourself, you still have to pay for:

• Content writers

• Link building

• Website systems

SEO is not free. It's an investment that requires time to yield a return.

Think Long-Term

In the beginning, your return on investment (ROI) might be close to zero. Think of SEO as a financial asset. Focus on the long-term ROI, not just website traffic or high rankings. What matters is whether SEO generates more revenue for your business. Make sure all your SEO efforts lead to a justifiable ROI for your business.

Customer Acquisition Cost (CAC)

The cost of acquiring a customer through SEO will be high initially. Whether you hire an agency or do it yourself, you'll have to spend money on:

• Agency fees (can be $2,000 to $25,000 a month)

• Writing content

• Editing

• SEO tools

These costs add up quickly. In the first few months, you might wonder why you spent all that money. However, if your SEO plan works, your CAC will decrease over time. Also, your overall CAC across all marketing channels will go down.

If you rank number one for popular keywords, all the clicks you get are technically free. You invested to get there, but every click after that doesn't cost you anything.

SEO is initially expensive, but it becomes more cost-effective over time. It takes patience. It's not enjoyable to spend thousands of dollars each month and not see an immediate return on investment.

Who Should Invest in SEO?

Who Should Pay for SEO, and When? If your business makes over $600,000 to $700,000 a year, SEO can work for you quickly. With the right SEO team, you should see results in two to four months. This is because you likely have many people searching for your brand. Google already trusts you.

If you have never done SEO, optimizing your website can improve your rankings fast. Also, links will have a bigger impact. If you play your cards right, you can see a good ROI in a few months. Some brands achieve a 3- or 4-fold ROI very quickly, and it only continues to increase from there.

If you are a smaller brand generating less than $500,000 per year, you may not need to pay anyone for SEO. You may become stressed about spending the money and not seeing the desired results. Instead, save your money and do SEO yourself. Set up the basics, optimize your website, and build a few links if you can.

If you are an agency, don't try to sell SEO to a small brand for thousands of dollars a month. They will likely quit after a few months and blame you for it.

Around the six-month mark, if you're doing SEO yourself, you might start to see consistent revenue. You have to work at it regularly. It's not just a one-time thing.

Remember, these timelines can vary depending on your industry and the competition.

Other Things to Keep in Mind

Here are some other things to consider:

• Competition: If you're in a competitive industry, it will take longer to see results.

• Domain Authority: If you're trying to outrank a well-established website, it will be tough.

• Velocity: The more content and links you create, the faster you'll see results.

SEO is like a snowball. It grows bigger over time.

Google Ads and social media ads can yield a 2 to 5x ROI. With SEO, you might start with a 3 to 4x ROI. But it doesn't stop there. Some brands see a 30x ROI from their initial investment.

SEO can generate a significant amount of revenue at a consistent cost. This is why SEO should be part of your plan.

SEO Might Not Be Your Best Channel

If you're starting from scratch, SEO probably won't be your best channel early on. It can take up to six months to achieve a positive ROI. With Google Ads, you can expect a return on investment in as little as 60 days. Additionally, paid ads enable you to test your product. You can find out if it's a good fit for the market in weeks, not months.

SEO is a component of success, but it's not a magic bullet.

The Bottom Line

SEO doesn't work for everyone. New brands might not be a good fit. Bigger brands can benefit greatly, especially if they have never done SEO. You can have extra money in your pocket in the next few months with a consistent monthly cost.

Ready to take your website to the next level? Consider working with an agency to help you develop and implement a strong SEO strategy.