Defining remuneration for SEO activities is the most electrifying issue. Customers want to pay for the achieved result. SEO agencies want to receive remuneration for the action itself, for example, by subscription or hourly settlement.
So we have three models of remuneration:
- For the achieved result, that is, the agency will receive the remuneration only when the page appears in the search results for a specific phrase at a specific place;
- Lump sum , i.e. the agency will receive a fixed salary irrespective of the amount of time devoted to and work put into the positioning of the website;
- Hourly at a given hourly rate, i.e. the final amount of remuneration is determined by the number of hours devoted to positioning.
If we pay the agency only for the result achieved, it is very likely that the agency will want to quickly reach high search positions. He can use not entirely fair positioning methods for this. When Google detects this, it will reduce the visibility of the page in the search engine. In extreme cases, Google may completely remove the page from the search results. For the best information about this, you can click here.
If the client wants to motivate the agency to act, then we suggest using a mixed model. In addition to the remuneration for the activities performed, the SEO Company will receive a bonus for the success achieved. At the same time, the contract must clearly indicate what events the parties consider to be a success, that is, what phrases, in which search engine, in what period, reach what search position. Search items are variable. The contract should include a record of how to determine the average position in the search results and tools to measure this.
Settlement of SEO tasks performed
Transparency is the basis of every contract. The customer has to know what he is paying for. The agency should know what it needs to do to get a salary.
Even if the parties have agreed to a lump sum payment, the contract should include a record of sending a report once a month on the work done. The parties may attach a model of such report to the contract. Thanks to this, the client knows how much work the agency has put in the positioning of the website. He also knows what actions the agency has done.
In addition, it is worth adding the provision that only after sending such a report, the agency has the right to issue a VAT invoice. This will motivate the SEO Company to send a report to its client.
Penalty for delay in payment by the customer
Not only customers want to mobilize agencies to act. Agencies also strive to add provisions to mobilize customers for payment.
An SEO company in a contract concluded with an entrepreneur may: indicate that in the event of a delay in payments, you will claim from it:
- Statutory interest for late payment in commercial transactions
- Compensation for the costs of recovering the amount of 40 dollars or more.