THinking about the SEO reseller today and wondering what the appropriate profit margin is in that business. This is a major dilemma if you think about it. Mark up the product too high and you will not attract customers. Or worse, you will land them through your hard sales work but they will not stick around very long once they discover that they can get better prices from another SEO sales team. A major problem for the SEO reselling team. SO what should an SEO reseller do? Markup the price too low and you will not be in the search engine optimization space that long. No money, no interest. We all know this in the for-profit space. SO you need to find that perfect balance for your SEO business – just as in life. And this will take trial and error to be sure. DOn’t think this will happen all by itself. You will get some right and other deals will go south. Just keep at it until you think you have the formula that is appropriate for your reseller business.
More and more, we are seeing that the advantage comes to the SEO firms that have awesome technology. Why is this? Well – SEO is still a hard concept for many consumers to understand. Sure, they get the idea that page 1 rankings are valuable. Afterall, they use Google also. But the actual mechanics of the process elude them a bit. And as an SEO reseller, you have the task of educating your buyer up-front to even get the deal. Once you have the customer, your issue is retention.. Again this leads to education..
I am seeing the SEO reseller technology is really the key to retention and customer satisfaction. Why? Because the technology makes the business case so much easier to make. Without great reports and awesome tracking, you are saying “trust me” to your customer. As much as they may like you, it is much easier to say “trust the numbers.” When an SEO reseller asks me “how to keep customers from quitting the program?” the first thing I tell them is to have them log into their dashboard. WHAT – NO DASHBOARD???!!! There’s your first problem. You don’t have awesome technology. Your job is much harder… You can either build one yourself or join a better reselling program.