How Profitable Is A Seo Agency? (Updated for 2024)
So you want to start a SEO agency?
And the first question that came to your mind was, “well, are SEO agencies actually profitable?”
Especially considering:
- You could start a SEO agency with as low as $9
- Based on our data, SEO agencies generate an average of $1.36M per year
- You could see gross margins as high as 75% with SEO agencies
There’s money to be made. Don’t worry.
But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a SEO agency.
Let’s dive in!
Is a SEO agency profitable?
Yes, a SEO agency is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.
For instance, since average revenue is $1.36M per year with an estimated gross margin of 15%, you could expect to recover your investment within 13 months or even less.
But of course, it all comes down to how much you earn compared to the potential revenues of your SEO agency.
To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.
Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your SEO agency is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.
Is a SEO agency worth it?
If you’re wondering if a SEO agency is worth it, the answer is a big YES. With SEO agencies, you have the potential to earn $1.36M per year (this is based on data reported by real founders).
Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.
With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.
Of course, you must learn and understand every aspect of running a SEO agency to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.
You might want to consider reading more specifics about successful SEO agencies case studies.
Examples Of Profitable Seo Agencies
Here are a few examples of profitable SEO agencies, and a few more details about them:
1. Rankings.io ($8.4M/year)
Chris Dreyer, the CEO/Founder of Rankings.io, came up with the idea for his SEO agency while working as a detention room supervisor. Bored at work, he Googled "how to make money online" and discovered digital marketing. He found success in affiliate marketing and eventually transitioned into the hyper-competitive field of legal marketing, opening his own agency.
Is it profitable? Yes
How much money it makes: $8.4M/year
Rankings.io is a hyper-focused SEO agency that helps elite personal injury law firms dominate first page rankings and was ranked #858 in the Inc. 5000 list of the fastest-growing companies in America for 2018, with a current revenue just under $300,000 per month, with plans for a record-breaking year.
2. On The Map Inc ($4.2M/year)
Rick Hoskins, the founder of On The Map Marketing, initially started his career in the air conditioning industry. After working for an internet marketing company, he saw the opportunity to start his own business and help companies get on the Google map. With a focus on sales and SEO, Hoskins has grown On The Map Marketing into a widely recognized brand, listed as one of the Inc. 5000 fastest growing companies for three consecutive years.
Is it profitable? Yes
How much money it makes: $4.2M/year
On The Map Marketing is a global internet marketing firm that has rapidly climbed the ranks to become a reliable, widely recognized brand in the industry, listed as one of the Inc. 5000 fastest growing companies three years in a row, offering a full array of optimized products: websites, content, pay per click packages, web development, etcetera.
3. Paper Box SEO ($336K/year)
Russell Michelson, the founder of Paper Box SEO, originally began as a freelance web designer. However, after clients consistently asked him for help with driving traffic to their websites, he transitioned into the world of SEO. Through teaching himself about digital marketing and experimenting with different methods, he developed a passion for SEO and eventually started his own boutique SEO agency, Paper Box SEO. Today, the company brings in $20k/month in revenue and focuses solely on providing comprehensive SEO services to small to medium-sized businesses.
Is it profitable? Yes
How much money it makes: $336K/year
This case study describes the journey of Russell Michelson who, after leaving his corporate job, turned his WordPress skills into a thriving boutique SEO agency earning $20k/month, thanks to client referrals and Upwork.
Learn more about starting a SEO agency:
Where to start?
-> How to start a SEO agency?
-> How much does it cost to start a SEO agency?
-> Pros and cons of a SEO agency
Need inspiration?
-> Other SEO agency success stories
-> Marketing ideas for a SEO agency
-> Seo agency Instagram bios
Other resources
How much can you make with a SEO agency?
With a SEO agency, you can make an average of $1.36M revenue per year (based on data reported by real businesses).
You can start with an initial investment as low as $9. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 13 months.
How much does a SEO agency make a week?
Based on our data, average weekly revenue for a SEO agency ranges around $28.2K. As such, you could see monthly revenues of $113K.
To know if your SEO agency achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.
Learning your weekly profit can also show whether you're hitting your target goal for your SEO agency.
How much do SEO agencies owners make?
The income of a SEO agency owner can vary depending on various factors such as location, size, competition, and the owner's business skills.
But to give you some idea, the weekly revenue of an established SEO agency is about $28.2K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.
While the potential for earning a good income as a SEO agency owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.
Seo Agency Profit Margins
Generally speaking, a SEO agency can expect profit margin of around 15%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a SEO agency, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.
However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, SEO agency owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, SEO agency owners can ensure long-term sustainability and profitability for their business.
Seo agency owner salary
The salary of a SEO agency owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established SEO agency, in a prime position, might see an average weekly salary around the ballpark of $4.24K.
But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.
Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.
Conclusion
In a nutshell, based on many of our examples, a SEO agency may be a promising business to start - but the success of your SEO agency mostly depends on your effort and your approach.
If you focus on these, you'll have a much higher chance of a profitable SEO agency.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
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