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Writer's pictureAilane Joy Ferrer

Local vs. National SEO Agencies: Understanding the Revenue and Client Dynamics

Updated: 1 day ago


Understanding the Revenue and Client Dynamics

In the ever-evolving world of digital marketing, one question looms large: should you partner with a local SEO agency or a national one? The answer isn't straightforward, as both types of agencies have unique strengths and weaknesses. Let’s dive into the data to understand how they compare in terms of revenue, client bases, and services offered.


Revenue Insights


Money talks, and when it comes to revenue, national SEO agencies are clearly ahead of the game. On average, national agencies pull in $2,353,611 annually, while local agencies lag behind with an average of $944,776. It’s no surprise that national agencies, which often handle larger clients with bigger budgets, consistently rake in more revenue. As the data suggests, "20% of national agencies earn less than $250,000 per year," showing that the majority are indeed reaping significant profits.


Client Payment Structures


Let’s break it down further: how much are clients paying these agencies? The disparity continues here. While over 61% of national agencies receive more than $1,000 per client each month, over 50% of local agencies see payments of less than $1,000. This stark contrast underscores a critical point—local agencies may be missing out on lucrative opportunities by not positioning their services at a higher rate. As Jamie Banks succinctly put it, "if you’re not charging what you’re worth, you’re leaving money on the table."


Client Management Ratios


When it comes to client management, the numbers tell an interesting story. Nearly 46% of SEO staff in national agencies handle 2-10 clients each, but a surprising 24% manage more than 31 clients! Conversely, local agencies tend to focus on fewer clients but may find their work less complex, allowing them to manage more. This demonstrates that while national agencies deal with a broader range of clients, local agencies often enjoy deeper relationships with theirs.


Projects vs. Retainers


Another point of divergence lies in the nature of their work. Local agencies are more inclined to handle project-based work, but this can be a double-edged sword. “Local SEO isn’t a ‘one project and you’re done’ kind of practice,” as it demands ongoing optimization and monitoring. This raises the question: are local agencies truly meeting the ongoing needs of their clients through project work?


In-Demand Services


What do clients want? For both local and national agencies, onsite SEO remains the most requested service, followed closely by website design and PPC. Interestingly, local agencies have a higher demand for GMB optimization, reflecting the need for businesses to establish a strong local presence. Nearly 50% of local SEO agencies prioritize this service, while larger clients with national agencies may prefer more traditional PPC avenues.


Final Thoughts


The debate between local and national SEO agencies is not about one being better than the other; rather, it’s about aligning your business needs with the right agency. Local agencies can offer personalized service and niche expertise, while national agencies bring scale and experience with larger clients.


In a digital world where visibility is everything, GMB Fox ensures your business isn’t just online—it’s the first choice customers make. Let us handle the complexities of digital marketing, so you can focus on what truly matters: growing your business.

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