Seo Agency

How Much Does It Cost To Start A Seo Agency? (In 2024)

Updated: September 27th, 2024

Looking to start a SEO agency?

But curious about:

  • how much it costs to start a SEO agency?
  • what are the typical SEO agency startup costs?
  • or the actual cost of starting SEO agencies?

Well, we have the data to prove it, supported by real SEO agencies and how much they actually cost to start.

Let's go over it.

What is the average cost of starting a SEO agency?

Based on our data reported by actual SEO agency founders, the average cost of starting a SEO agency is between $9 and $600,000.

Additionally, our data shows that the the median startup costs for a SEO agency are around $1.5K.

Remember, though, not all SEO agencies are the same - and neither are people's budgets. It's important to distinguish between different levels or types of SEO agencies

Real World Examples: How much does it cost to start a SEO agency?

We asked real SEO agency founders and business owners how much it actually cost to get started?

Here is what they said:

Chris Dreyer

Founder of Rankings.io ($700K/month)

"I didn’t save a lot of money when I was younger (as you might imagine, based on how I treated my retirement fund), so I bootstrapped the company with a $15,000 loan from my sister, who is herself a very successful entrepreneur (she and her husband own a plumbing company)."

Chris Dreyer is the founder of Rankings.io, a hyper-focused SEO agency that specializes in helping elite personal injury law firms dominate first page rankings.

Read by 38,826 founders

Nathan Elly

Founder of Digital Next ($290K/month)

"Financially, we had no investment and funded all our activity, wages and initial expenses from the limited number of clients we had. This meant that, in the early months, the company’s revenue was around the $5k/month mark."

Nathan Elly is the founder of Digital Next Australia, a search marketing agency that started in 2014 in Melbourne and has grown to turn over approximately $2 million per year.

Read by 5,769 founders

Rick Hoskins

Founder of On The Map Inc ($350K/month)

"I bootstrapped, I was self-funded. Originally, I started cold-calling clients from my living room to start attracting clients. I grew as the business grew, little by little. Originally, I had a partner. We were in business together for about a year or two and I decided to buy him out."

Rick Hoskins is the founder of On The Map Marketing, an internet marketing firm that has grown significantly over the past ten years to become a well-recognized brand, employing forty-five people across three offices.

Read by 8,629 founders

Russell Michelson

Founder of Paper Box SEO ($28K/month)

"The company has always been able to fund itself through cash flow. It’s a very low cost, low overhead business model."

Russell Michelson is the founder of Paper Box SEO, a boutique SEO agency that focuses on growing their clients' organic traffic through long-term contracts and all-inclusive packages.

Read by 9,630 founders

Noah Riggs

Founder of Busy Living Better ($5.2K/month)

"I went all-in by purchasing the domain names, the best courses I could, and began building my blog as quickly as possible."

Noah Riggs is the founder of Busy Living Better, a blogging and SEO consulting business that he began in 2018.

Read by 7,448 founders

Bob Weichler

Founder of Weichie.com ($30K/month)

"I tried starting my business on the side during my studies, but the cost of starting a company, an accountant, taxes, quickly made me go bankrupt almost immediately."

Bob is the founder of Weichie, an e-commerce and web design agency based in Brussels that leverages its expertise in creativity, technology, and business to help brands grow and scale their online visibility.

Read by 6,053 founders

Matt G Davison

Founder of Travel Tractions ($35K/month)

It was slow going as we had to build our customers from the ground up with a budget of around $10,000.

Matthew Davison is the founder of Travel Tractions, a tourism-focused marketing agency that achieved impressive growth even after significant setbacks.

Read by 2,420 founders

Roger Parent

Founder of Digital Position™ ($390K/month)

"Luckily for me, starting an agency requires very little overhead (just enough salary to get by + a computer)."

Roger Parent is the founder of Digital Position, a digital marketing agency that started in 2014 and now brings in over $330,000 per month.

Read by 9,366 founders

Janet Camilleri

Founder of Front Page SEO ($12K/month)

"Fortunately, I already had a computer and a mobile phone, so didn’t have much in the way of start-up costs; plus the redundancy payout helped. I got a website (built it myself), some business cards, and brochures and that was about it."

Janet Camilleri is the founder of Front Page SEO, a boutique digital marketing agency specializing in search engine optimization, which started in 2012 after she experienced a shock redundancy.

Read by 3,586 founders

Jade Pruett

Founder of HelloSEO ($25K/month)

"Financially, there was very little investment in my business. The only thing I purchased initially was a membership for Ahrefs, which allowed me to track things for my clients. Everything else was managed through Google Suite."

Jade Pruett is the founder of HelloSEO, a boutique SEO agency business that serves small to medium-sized businesses across the US and beyond.

Read by 4,625 founders

Enjoyed reading these real world examples?

Our platform is full of case studies of successful SEO agencies that you can learn from.

Starting a SEO agency - what you should know:

Starting an SEO agency involves various cost considerations that can affect the overall budget significantly.

Initial Setup Costs

The initial setup costs for an SEO agency can vary, but you should expect to spend anywhere from $5,000 to $15,000. This includes expenses such as business registration, website creation, branding, and initial marketing to attract your first clients. For example, a well-designed website might cost between $2,000 and $5,000, while branding expenses, including logo design and marketing materials, could run between $1,000 and $3,000.

Software and Tools

Investing in SEO tools is a critical component that can impact your budget. Essential tools like Ahrefs, SEMrush, or Moz usually come with monthly subscriptions ranging from $99 to $399 per month. For example, a subscription to Ahrefs starts at $99 per month, which adds up to $1,188 annually. Additionally, other necessary tools for content management, keyword tracking, and analytics could add another $100 to $300 per month, leading to a total monthly software budget of $200 to $700.

Workspace and Equipment

Depending on whether you operate remotely or rent office space, your overhead costs can differ significantly. Renting a small office space might cost between $300 and $1,500 per month, depending on your location. If you're working from home but require specific equipment, such as a high-performance computer and ergonomic furniture, you might spend an initial $1,000 to $3,000.

Marketing and Client Acquisition

Marketing your new SEO agency is another variable cost. Allocating between $500 and $2,000 per month for advertising on platforms like Google Ads, LinkedIn, or Facebook can help you generate leads. Additionally, investing in content marketing and SEO for your own site can add another $500 to $1,500 monthly, depending on whether you handle the work in-house or hire freelancers.

Employee and Contractor Costs

If you plan to hire employees or contractors, labor costs can be significant. Salaries for experienced SEO specialists can range from $40,000 to $80,000 annually, while freelance consultants or contractors might charge between $50 and $150 per hour. Therefore, an annual budget of $60,000 to $120,000 for a small team of well-qualified SEO experts is common.

By understanding these costs upfront, you can plan your budget more effectively and increase the chances of your SEO agency's success.

Potential Costs of Starting a SEO Agency

Starting an SEO agency involves various costs, including infrastructure, tools, labor, and marketing. Below is a detailed table outlining these potential expenses, with specific numbers and ranges where possible.

Expense Category Item/Description Estimated Cost Range
Infrastructure Office Space $500 - $2,000/month
Utilities (Electricity, Internet, etc.) $100 - $300/month
Office Supplies $50 - $200/month
Technology & Tools Website Hosting (for client sites) $10 - $50/month
Domain Name $10 - $15/year
Professional Website Design for Agency $500 - $3,000 (one-time)
SEO Tools (e.g., Ahrefs, SEMrush, Moz) $100 - $400/month
Analytics Tools (e.g., Google Analytics, Hotjar) $0 - $200/month
Content Management System (e.g., WordPress, Joomla) $0 - $50/month
Project Management Tools (e.g., Trello, Asana) $10 - $25/month
Communication Tools (e.g., Slack, Zoom) $0 - $50/month
Labor Costs SEO Specialists Salaries $40,000 - $70,000/year
Content Writers (Freelance or In-House) $0.10 - $0.50/word or $30,000 - $50,000/year
Web Developers $20,000 - $40,000/year
Graphic Designers $30,000 - $60,000/year
Marketing & Sales $40,000 - $80,000/year
Administrative Staff $30,000 - $50,000/year
Marketing Costs Paid Ads (e.g., Google Ads, Facebook Ads) $500 - $5,000/month
Social Media Marketing Tools $100 - $300/month
Email Marketing Tools (e.g., Mailchimp, Constant Contact) $10 - $50/month
Content Marketing (Blog posts, videos, infographics) $500 - $3,000/month
Training & Development Online Courses and Certifications (e.g., Coursera, Udemy) $50 - $200/course
SEO Conferences and Networking Events $200 - $2,000/event
Books and Educational Materials $50 - $200/year
Miscellaneous Business Insurance $200 - $1,000/year
Legal Fees (e.g., registering as a business, getting trademarks) $500 - $1,500 (one-time)
Accounting and Bookkeeping $300 - $1,000/year

These detailed potential costs can help provide a comprehensive perspective on what is required financially to begin and maintain a successful SEO agency.