
You’ve narrowed down your list of SEO agencies to a short list, sent out an SEO request for proposal, and received proposals from your top choices. If you’re feeling a bit overwhelmed with the process, you aren’t alone. By knowing how to read and understand proposal for SEO and contracts, you can save time and frustration while making it easier to find the agency that’s the best fit for your needs.
Understanding SEO Proposals and Contracts
Many marketers mistakenly use the terms “SEO proposals” and “SEO contracts” interchangeably. However, they are two separate documents with different purposes. An SEO proposal details the agency’s strategy for meeting your SEO goals. Within the strategy, the agency includes the scope of work, which explains what services are provided by the agency, as well as all deliverables, such as reports and content creation. Additionally, the proposal should detail the KPIs, such as organic traffic and CTR, that they will monitor and work to improve.
Organizations looking to hire an SEO agency should carefully review all proposals to determine which agency has the best experience and expertise to meet their goals. After you decide which agency to select, the agency sends over the contract, which is a formal document that sets the terms that both parties agree to, including length of engagement and payment schedule. The contract should also include the process and expectations if one party decides to end the relationship before the contract is scheduled to end. Before signing the contract, organizations should go through all terms and conditions with their legal team before signing the legally binding document.
Why Comparisons Matter Before You Sign
After researching and interviewing multiple agencies, it’s tempting to sign the first proposal that appears to meet your needs. However, this often leads to overpaying for services or partnering with a generalist agency — when the business has industry-specific needs. Additionally, businesses may fall victim to falling for impossible guarantees or accepting a standard contract without customizations.
Taking the time to compare multiple proposals provides you with information that helps you understand industry standards in terms of market rates and realistic promises. The marketing teams can also better identify which agencies bring specialized expertise to the table, and they are able to see the benefits of hiring a niche firm if needed. By seeing the different possibilities, businesses are also better able to negotiate. For example, if one agency does not offer monthly KPI reports, you know from seeing it on other proposals that it’s industry standard and can request reporting as part of the standard services.
Key Sections to Examine in Any SEO Proposal
While there are variations to SEO proposals, the document typically includes the following sections.
1. Scope of Work
This section provides the specifics about what the agency will provide to your business in terms of SEO services. Typically, this section starts with the overall project objective and then dives into the details of specific services, such as on-page SEO, local SEO, off-page SEO, technical SEO, and content creation. The SOW (scope of work) should also include project deliverables, such as reports and KPIs, as well as customer-facing deliverables, such as blogs and social media posts.
When reviewing the SOW, the most common red flag is vague promises and generic language, such as “increase organic traffic.” Instead, you want an agency that clearly defines the scope, such as “increase organic traffic 5% in six months and 10% in 12 months. If you see industry standard services that are missing, such as an SEO audit, ask the agency if it can be included in the services.
2. Timelines and Milestones
Because SEO is a process, not a single project, look for proposals that detail the specific milestones of the process, such as SEO audit and content creation. You should also expect to see timelines for specific improvements, such as seeing early ranking improvements in the first three to six months. Each milestone should include what the agency will be doing during that time period, the expected results, and how the agency will measure the results with specific KPIs. While there may be some flexibility, you should discuss the pros and cons of changing the timelines with the agency.
If an agency promises you quick results, such as ranking on the first page in three months, they are committing to unrealistic timelines that they are very like not deliver on. Agencies that take this approach during a proposal are often not well-versed on the most effective SEO strategies. By looking for an agency with a solid understanding of what it takes, both in terms of strategies and timelines, you are more likely to achieve your goals and improve your SEO.
3. Cost Structure and Payment Terms
When evaluating proposals from SEO agencies, it’s important to understand the costs, how the costs are structured, and any hidden costs. Because it can be challenging to compare proposals with different cost structures, consider discussing your preferred structure before moving to the proposal stage.
The most common pricing structure for agencies is a retainer model, where you pay the agency the same amount every month for a defined set of services. When reviewing prices, make sure that the quoted amounts fall within industry averages. A 2024 Ahrefs survey found that the average monthly SEO retainer is between $1,500 and $5,000. Companies looking to outsource the majority of their SEO needs often use this approach, which requires less administration and a consistent payment amount. However, if you don’t use all the services every month, you pay for services you don’t need. When evaluating a proposal with a retainer model, make sure that an SEO audit and monthly reports are included in the retainer.
Companies that need a specific project completed, such as technical SEO or backlink building, may opt to outsource the project to an agency and pay a flat rate for the project. The Ahrefs survey found that the average project price is between $5,000 and $30,000. If you need an agency to help with specific tasks on an ongoing basis, such as keyword research, you may prefer an hourly model, which Ahrefs found averages from $100 to $250 per hour.
4. Goals and KPIs
KPIs are a key part of SEO strategy because they define the measurement for success and create a process for collecting the data. An agency’s SEO proposal should include goals and KPIs that directly align with the business goals you discussed. For example, if you want to increase your presence in a specific region or demographic, look for the proposal to tie the KPIs to those areas. For example, “Increase organic traffic in Asia by 10% within 6 months.” An agency that includes generic KPIs or ones that are not tied to your goals either does not understand your needs or uses a generic process for all clients instead of personalizing them to specific objectives.
Common KPIs used for SEO include organic traffic, keyword rankings, and click-thru traffic. However, the proposal should detail specific and measurable goals that explain what will happen, how much, and within what timeframe. For example, an agency that states they will “rank the website on the first page” is a red flag. Instead look for statements such as “Will rank on page 1 of Google by 9 months for keywords X and X.”
5. Agency Credentials
Many SEO agencies fill the explanation of their credentials with buzzwords and promises. However, you must make sure the agency has the actual expertise and experience to improve your company’s SEO. To verify the potential agency’s credentials, look for the following items when reviewing this section on their proposal. You may need to do independent research if the information is not included in the proposal.
- Review customer case studies and focus on the tangible benefits. Ask the agency if you can contact the customer to verify the results.
- Look for industry-recognized certifications such as HubSpot, Semrush, Moz, Yoast, LinkedIn Learning, and eMarketing Institute.
- Ask about the SEO and industry experience of all the team members who will work on your account.
- Look to see if the agency has won any awards, such as US Search Awards, Search Engine Land Awards, and the DesignRush Top 30 list.
- Check user reviews for the company at G2, Capterra, and Clutch.
- Determine how many years the agency has focused on both SEO and your industry.
- Ask the agency about client retention rates, which demonstrate customer satisfaction.
Breaking Down Contract Terms and Deliverables
After you accept an agency’s proposal, the agency will create a contract for you to sign. You must carefully review all aspects of the contract to make sure that all proposal promises are reflected in the contract language.
Here are the common sections in the contract.
Payment Clauses
The section details all aspects of the payment for the SEO services, including what payment methods are accepted and when payment is due. When reviewing payment clauses, note that a 30-day invoice, meaning you have 30 days to pay once they bill you, is considered industry standard. Additionally, many agencies include a non-refundable fee for initial work or audits in their contract. The contract should include a refund to the company if the agency misses a deadline or fails to deliver.
Termination Clauses
The section explains what happens if one side — either the hiring company or the agency — decides to end the contract before the term is complete. The termination clause should set the length of the contract as well as termination terms. Because some agencies create contracts that are very one-sided with their termination terms, it’s important to carefully review all details in this section to protect your company legally and financially.
Review the notice period, which is the amount of time either party must give before ending the contract, as well as exit conditions, which are acceptable reasons to end the contract. If the contract does not include an exit clause for the agency not meeting performance goals, bring up this point during the negotiation. Be sure also review the early termination clause, which typically involves the company paying the agency 10-50% of the amount remaining on the contract. A contract that does not include an early termination fee or requires full payment if the contract is canceled early is a red flag.
Ownership of Content
This section specifies whether the agency or company owns the created content, research, and strategy documents after the relationship ends. In most cases, the contract is work for hire and states that the company owns the content, deliverables, and strategies that the agency created during the relationship. However, an agency may retain ownership of specific items, such as templates or syndicated content, which should be detailed in the contract. Make sure the contract explicitly states ownership of keywords research reports, link building strategy documents, technical audits, reporting dashboards, and templates.
Reporting Frequency
This section explains the appropriate reporting frequency and detail that the agency will provide. Because this is an essential work product of the relationship, it’s important to have this clearly defined so there is no miscommunication regarding what is expected from the agency. Look for exactly what elements will be included in the report and what KPIs will be monitored. For most projects, especially during the beginning, its reasonable to expect monthly reporting.
Common Red Flags to Avoid
When reviewing proposals, keep your eyes open for the following red flags.
1. Guaranteed Instant Results
It’s easy to be drawn to an agency that promises high rankings or fast results. However, if an agency promises either of these things, it’s actually a giant red flag. Agencies that make these promises often use black hat methods, such as keyword or backlink stuffing. While these methods can get quick results, they do not last — and often result in penalties from search engines, which can damage your company for years to come. Instead, look for agencies that provide a timeline of three to six months to begin seeing small changes and a year to see larger improvements. If a proposal states that they cannot guarantee results or a timeline, it’s a sign of a reputable agency that understands the SEO process.
2. Vague Pricing or Hidden Fees
Review the proposal and contract for a clear pricing structure that explains how much you will pay, when it is due, and what you will receive for these costs. Make sure the documents detail whether SEO audits, reporting, and content creation are included in the price or if they are an extra expense. A proposal with an unclear pricing structure will not define if it’s hourly, project, or retainer based, as well as omit a clear list of services and deliverables.
3. No Defined KPIs or Reporting Methods
Without KPIs and reporting, you will not know if the agency is delivering the expected results. Because the KPIs should directly tie to your company’s goals, it’s essential that the agency uses the right metrics for your objectives. Look for the proposal to list the exact KPIs and the changes expected in each metric by specific dates. The proposal should also define how often the agency will provide reports to the company and exactly what reports with what metrics will be included.
A Quick Comparison Checklist
Because it’s easy to become lost in the promises and details of the proposals when reviewing documents from multiple agencies, it’s helpful to use a comparison checklist. Here is a sample checklist to help you compare them effectively.
- Does the proposal demonstrate that the company understands our goals and aligns the services to our needs, such as KPIs, deliverables, and services?
- Does the proposal clearly define the costs, terms, and termination costs?
- Does the proposal clearly define all deliverables and the frequency of the deliverables?
- Does the proposal include specific items that detail the agency’s track record?
Elevate Your Search Strategy with Confidence
When evaluating proposals, the most important thing to look for is an agency that understands your goals and is tailoring their services to your company’s specific needs. By using Best SEO Companies as a resource, you can gain additional insights and data points to make the right decision. Agencies’ lists on Best SEO Companies have completed an extensive vetting process that ensures that listed agencies provide transparent, comprehensive proposals and fair contracts.
FAQs About Comparing SEO Proposals and Contracts
How can I determine if an SEO proposal is reasonably priced for my industry?
Because prices can vary considerably, you should use industry benchmarks based on business size, competition, and goals to determine appropriate pricing. By using Best SEO Companies lists as a resource during the process, you can determine the average costs of each agency as well as compare prices to determine if a specific quote is reasonable.
What should I do if I receive wildly different strategies in multiple SEO proposals?
If the proposals you receive detail very different strategies, the first step is to evaluate if all the agencies are using ethical SEO strategies instead of black hat methods. If all the agencies are above board, the next factor to evaluate is which proposal offers techniques specific to your industry and company’s goals.
How long should I expect to wait before seeing results from an SEO campaign?
Because the time to results can vary widely based on industry, amount of investment, and current SEO positions, agencies cannot promise specific outcomes. Look for an agency that does not state that it can deliver initial changes before three to six months or large scale changes in under a year.
What documentation should I request beyond the initial SEO proposal?
In addition to the proposal, many companies find that additional documents can help them make the right decision. Consider asking for case studies, sample reports, and contract drafts before making a final decision on an SEO partner.
Best SEO Companies
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