Pay-for-performance SEO (PFP SEO) and retainer SEO are two models of payment used by digital marketing agencies to offer their services.
In PFP SEO, you pay only for the results you achieve, while in retainer SEO, the client pays a fixed monthly fee regardless of the results.
Here are 10 reasons enterprises should choose PFP SEO over retainer SEO:
Cost-effectiveness:
Pay-for-performance SEO service is cost-effective as you pay only for the results you achieve. With this, you can allocate your budget more effectively and get the most out of your marketing spend. You don’t have to worry about upfront fees or monthly retainers that may not deliver results.
Table available at ResultFirst website, February 2023
Greater accountability:
Performance-based SEO incentivizes the service provider to deliver results, as their payment depends on it. This creates a greater sense of accountability. The agency becomes more responsive and proactive in addressing any issues that arise. This leads to better outcomes.
Transparency:
Pay-per-result SEO ensures more transparency as you can see exactly what you’re paying for and what results you’re achieving. This means you’ll be up-to-date on progress and have better visibility into what’s working and what’s not.
Flexibility:
Flexibility is another reason to opt for PFP SEO over traditional SEO. The former model allows for greater flexibility in terms of campaign strategy, as the agency is incentivized to try different tactics to achieve the desired results.
Results-focused:
PFP SEO is entirely focused on achieving results, which means the agency constantly works to improve the client’s search engine rankings.
ROI-driven:
Pay-for-performance SEO is ROI-driven, meaning you can be assured that your investment will lead to measurable results. The focus of PFP SEO experts is on delivering measurable ROI, which means they are more motivated to achieve results that drive revenue and improve your bottom line.
| Criteria | Pay for Performance SEO | Retainer SEO |
| Payment Structure | Payment only upon results achieved | Monthly retainer, regardless of results achieved |
| Upfront Fees | No upfront fees | Upfront fees may be required |
| Cost | Depends on the results achieved | Fixed monthly fee even for no results |
| Risk | Limited risk since payment is only made upon results achieved | Higher risk since payment made regardless of results achieved |
| Transparency | High level of transparency since payment is tied to specific outcomes | Maybe less transparency since payment is not directly tied to specific outcomes |
| Flexibility | Flexible since you can adjust the program as needed | Less flexible since you are committed to paying the retainer fee for a set period of time |
| Motivation | High motivation since the SEO provider is only paid upon achieving results | Maybe less motivation since the provider is guaranteed payment regardless of the results |
| Accountability | High accountability since the provider is only paid upon achieving results | Maybe less accountability since the provider is guaranteed payment irrespective of the results |
| ROI focus | Strong focus on achieving ROI since payment is tied to specific outcomes | Maybe less focus on achieving ROI since payment is not directly linked to specific outcomes |
Better Results & Align with Business Goals
Pay for performance SEO incentivizes the SEO provider to achieve tangible and measurable results, which means they will put in more effort to achieve better outcomes.
Further, the ROI-driven SEO approach aligns with your business goals because the SEO agency is incentivized to deliver results that support your business objectives.
Customized Approach:
Pay-for-performance SEO providers take a customized approach to each client. They tailor their strategy and tactics to meet specific business needs and goals.
The service providers constantly optimize their approach to delivering the best results. This means you’ll benefit from ongoing improvements to your SEO program.
No long-term Commitments:
Performance-based SEO does not require long-term commitments, so you can adjust your SEO program as your business needs change.
Strategies Incorporated in Pay-for-Performance SEO
- Keyword research: Keyword research is an essential component of any SEO strategy, and it’s no different for pay-for-performance SEO. The SEO provider conducts research to identify the most relevant and high-value keywords for your business.
- On-page optimization: On-page optimization involves optimizing various elements on your website, such as title tags, meta descriptions, header tags, and content. This is done to improve the relevance and quality of your website content for specific keywords.
- Off-page optimization: Off-page optimization involves building high-quality backlinks from other authoritative websites to your website. This helps to improve the authority and credibility of your website, which can lead to higher search engine rankings.
- Content creation: Creating high-quality content optimized for specific keywords is essential to any SEO strategy. The SEO provider may create new content or optimize existing content to improve its relevance and quality for specific keywords.
- Local SEO: Local SEO involves optimizing your website and online presence to rank well in local search results. This is important for businesses that rely on local customers or have a physical storefront.
- Technical SEO: Technical SEO involves optimizing various technical elements of your website, such as page speed, mobile-friendliness, and crawlability. This ensures your website is optimized for search engines and provides a good user experience.
- Analytics and reporting: Analytics and reporting are essential for monitoring the progress of your pay-for-performance SEO program. The SEO agency provides regular reports showing the results and strategies used to achieve them.
Overall, the strategies used in performance-based SEO are similar to those used in traditional SEO. The difference is that pay-per-result SEO focuses on achieving specific outcomes or results, which means the SEO company is highly motivated to deliver tangible results.
Conclusion
There are many compelling reasons enterprises should consider pay-for-performance SEO over retainer SEO. From the potential cost savings to increased accountability and transparency, pay-for-performance SEO can offer businesses a more effective and efficient way to optimize their online presence. By focusing on measurable results and paying only for the outcomes achieved, companies can ensure they get the most value for their SEO investment.
However, whether you work with pay-for-performance or retainer SEO, the most crucial factor is to work with a reputable and experienced SEO company that can deliver tangible results and help the business achieve its digital marketing objectives.
