The SEO Business Model & How To Start Your Own Agency

With AI shaking up search and organic trends shifting, is starting an SEO agency still a smart move?

Yes! The agencies I know, including mine, are proof.

SEO isn’t dying, it’s evolving with people’s relentless need for answers.

Whether it’s Google, ChatGPT, or the next big thing, businesses still crave organic leads to grow.

Here’s how to launch your own SEO agency in spite of constant changes to online traffic channels.

A Personal Anecdote

When ChatGPT launched in late 2022, I knew it could shake up SEO. But when mainstream adoption took off, I started wondering if my agency was in trouble.

Throughout 2023, clients slashed budgets, friends in similar businesses asked, “Hey, have you noticed a drop in leads?” and those with a splash of digital marketing knowledge predicted I’d be out of business by Christmas.

I’ll admit—I was rattled. Years of grinding to build Dialed Labs seemed like they might unravel overnight.

But I didn’t fold. We pivoted hard—doubled down on quality traffic over quick wins, retooled our services for an AI-shifted world, and leaned into what clients really wanted; leads that convert.

A year later, our revenue had doubled. Turns out, SEO wasn’t dying—it was just changing, and we adapted to those changes…

That rollercoaster taught me something: the doomsayers have been burying SEO for a decade, yet here we are, thriving.

Clients still rave about organic leads outperforming other channels, and the SEO market is growing 8.7% annually—on track to hit $157B by 2032. If I can ride that wave, so can you. Here’s how to start your own agency and make it stick.

Assess Your Skillset

Selling services without truly understanding SEO is a recipe for failure.

You wouldn’t open a restaurant if your only skill was boiling pasta. Even if you plan to hire experts, you need to understand the basics to lead effectively. And learning SEO isn’t about reading blogs or taking courses—it’s about working on real websites.

That said, clients’ websites are not your testing ground. Their site is often their most valuable asset, and even small SEO mistakes can lead to major traffic drops, revenue losses, or worse—destroying their business.

So, where should you start?

• If you’re new, experiment on your own projects first. Practice in a space where mistakes won’t cost someone their livelihood.
• If you’re experienced, recognise that technical skills alone won’t build a successful agency. Business skills—sales, client management, leadership—are just as important.

Being a world-class SEO doesn’t guarantee success if you struggle to sell your services or manage a team.

Ask yourself: What are you great at? Where do you need help? Fill those gaps—whether that means learning, partnering, or hiring the right people.

Once you assess your strengths and weaknesses, you can map out a plan that ensures your agency has a solid foundation for growth.

Niche Down

When I first started freelancing, I took on any client willing to pay. While it was a great learning experience, I quickly realised being a generalist meant I was constantly reinventing the wheel for every new project.

Choosing a niche isn’t just about narrowing your focus—it’s about making your life easier and standing out in a crowded market.

• Avoid being a generalist: “Full-service marketing” sounds good, but it rarely convinces clients. They want specialists.
• Pick a niche you understand: If you have experience or interest in an industry, that’s a strong starting point.
• Balance expertise and demand: The best niche is one that aligns with both your skills and market opportunity.

Working with clients in a wide range of industries, you could argue that Dialed Labs is a generalist agency. Offering strategy, technical and link building, we niched down on services instead of industry.

Our expertise is lead generation, which works best for service businesses. Some eCommerce and SaaS companies also work with us.

By solely delivering these services, we’re able to offer more valuable strategies, and more predictable outcomes than someone delivering each service for the first time. Specialising makes you more appealing and lets you charge premium rates.

Figure Out Your Services

When deciding which services to offer, you’ll need to strike a balance between expertise, market demand, and long-term vision for your business.

If you’re starting out, consider focusing on one service and scaling it. Many successful agencies hyper-specialise in areas like site speed optimisation or keyword research.

On the other hand, if your goal is to run a more traditional SEO agency, there are essential services you’ll need to include to cover the key aspects of SEO. Here’s what they are and why they matter:

• Auditing & Strategy: Identify technical issues, content gaps, and ranking opportunities.
• Content Creation: Developing high-quality, search-optimised content that addresses intent.
• Keyword Research: Uncovering the terms that drive relevant traffic and conversions.
• Link Building and Digital PR: Earning backlinks that will build authority and rank content.
• Technical SEO: Optimising things like, crawlability, indexability, UX signals, and structure.
• Managed SEO Services: Offering ongoing support, and being accountable for campaign results.

You can specialise in one service or offer a full package—just ensure it delivers value and is scalable.

I started out offering audits and content strategy before expanding into link building and technical SEO. This allowed me to develop expertise in stages rather than trying to do everything at once.

Build a Portfolio

Establishing a reputation from scratch is one of the toughest challenges in any business—and SEO is no exception.

In an industry where results speak louder than words, you need tangible proof of your capabilities to attract clients and build trust. Remember to:

• Showcase your results: Document every win, whether from personal projects, case studies, or client work (with permission).
• Optimise your own site: If you don’t use SEO to get clients, why should they trust you?
• Publish proof: Rankings, traffic growth, and revenue impact all build credibility.

Early on, I ranked my own site for competitive SEO terms. That single achievement landed me multiple inbound leads and proved I could deliver results. Your portfolio isn’t just about stats—it’s about proving you can deliver.

Choose an SEO Business Model

Your business model isn’t just a pricing strategy—it’s the foundation of how you’ll deliver value, manage clients, and grow your agency. There’s no one-size-fits-all.

Whether you prioritise predictable income or performance-based rewards, your choice will shape the type of clients you attract and how you scale your services.

Think about your niche and goals, then select a model that aligns with your long-term vision.

Retainer

A retainer model provides predictable revenue by charging clients a fixed monthly fee. This approach is ideal for long-term SEO campaigns where consistent work is required.

Clients benefit from ongoing support, while agencies enjoy stable revenue. However, it requires delivering consistent results and maintaining strong communication to retain trust over time.

To justify their investment, clients need to see results. That means setting clear expectations and providing regular updates. Building a strong relationship is key to retaining clients and ensuring long-term stability for your agency.

Retainers account for a large % of our revenue over at Dialed Labs. We love building strong working relationships with long-term clients.

This pricing model is simple and everyone’s aligned—the client is paying you money, so they want to get you the access and resources you need. If you don’t get results, they’re going to stop paying, so naturally, you’re doing the things that’ll move the needle!

Performance-Based

The performance-based model ties payments directly to specific outcomes, such as increased rankings, traffic, or conversions.

This structure appeals to clients who are hesitant to commit to ongoing fees without guaranteed results. For agencies confident in their ability to deliver, this model can be highly rewarding and showcase your expertise effectively.

That said, performance-based agreements come with risks. External factors like algorithm changes or market shifts can impact results, leaving your agency vulnerable.

This model works best when you have a proven track record, clearly defined KPIs, and the ability to manage risks proactively, but in my experience, these are best combined with a retainer to give your client some skin in the game.

Revenue-Share

Revenue sharing allows you to earn a percentage of the profits generated from your SEO efforts. This model aligns your success with the client’s, creating a true partnership.

It’s particularly effective for high-growth businesses that need an SEO partner invested in their success. In theory, this could be the ticket to a great lifestyle business; you build an asset, and your client does the operational work month after month. Easy, right?

Well, this approach requires a thorough understanding of the client’s business and meticulous tracking of revenue attribution. High levels of trust and transparent reporting are essential to making this model work effectively for both parties.

Most clients seeking to engage agencies via this arrangement are afraid of the financial commitment of an SEO campaign and often don’t follow through. Meanwhile, you’ve invested in their asset, which they get to keep, while you get nada.

If this model sounds suited to your personality, get an iron clad contract in place, or consider building rank and rent sites instead, so you get to keep the asset in the event that the relationship goes south.

Project-Based

The project-based model is perfect for defined, one-off tasks like audits, migrations, or keyword research. Short term backlink building campaigns can be a good fit here, too.

Clients with specific needs appreciate this structure, as it allows them to address targeted issues without committing to long-term contracts.

For agencies, this model is a great way to showcase expertise and secure short-term income.

The downside is that project-based work doesn’t guarantee recurring revenue, requiring constant client acquisition to maintain stability. Building a steady pipeline of projects is essential to keep your agency profitable, growing, and your team employed.

Over at Dialed Labs, we do our best on one-time projects, treating these clients as a future return customer. By staying in contact, the majority return for future projects, or to sign on for a retainer when budget allows.

Tiered Service

A tiered service model offers clients multiple pricing packages, catering to various budgets and needs. For example, you might provide basic keyword research at the lowest tier and full-service “managed SEO” at the highest.

This structure allows you to attract a broad range of clients and upsell as their needs grow.

To succeed, you must clearly define the scope of each tier and ensure there’s no overlap that leads to over-delivering on lower-priced packages. A well-structured tiered system makes your offerings scalable and manageable.

Pay Per Lead

The pay-per-lead model charges clients based on the number of qualified leads you generate. It’s a straightforward, results-driven approach that resonates with clients focused on ROI.

Agencies specialising in lead generation can thrive under this model if they deliver consistent, high-quality leads. Still, you’ll want to be clear on who owns the asset, otherwise it’s similar to the revenue-share model.

The challenge lies in maintaining lead quality and ensuring transparency to be sure you’re getting paid for all of the leads you generate. To avoid disputes, set clear criteria for what constitutes a qualified lead and provide regular reports.

Hourly Consulting

Hourly consulting is ideal for agencies or individuals who excel in strategy or advisory roles. It offers flexibility for clients seeking expert guidance without committing to ongoing work.

For agencies, it’s an opportunity to monetise expertise and build relationships that may lead to larger projects.

As an independent SEO consultant, I’ve done a lot of this. The primary problem with this model is its scalability limitations, as earnings are tied directly to time. Careful time management and premium pricing are essential to making this model profitable if you’re going to do the consulting yourself.

If you’re planning to hire a team of consultants, you’ll need to find top talent willing to work for a fraction of your billing rate. It’s not impossible, but also not as simple as it sounds.

À la Carte

An à la carte model allows clients to customise their service package by choosing specific tasks, like content creation or backlink packages. This is kind of like the project-based model, only on a smaller scale.

This approach offers maximum flexibility and appeals to clients with targeted needs or limited budgets.

While this model can attract a diverse range of clients, it requires some very clear communication to avoid scope creep. Well defined deliverables and specific, fixed-rate pricing can help to keep both parties aligned.

Acquire and Retain Clients

Client acquisition is the lifeblood of every SEO agency. Consider which path appeals to you:

• Inbound marketing involves creating valuable content, posting case studies, or contributions to a business community—positioning you as the expert clients need.
• Outbound marketing requires you to take the initiative, reaching out through cold emails, networking events, or social media DMs.

Both methods work, but inbound often results in warmer leads, while outbound can fill your pipeline faster.

Don’t underestimate the power of referrals and repeat business. Happy clients are your best sales team, so deliver results and nurture those relationships.

Freelancing platforms like Upwork or Fiverr can also be worth considering when starting out. These platforms let you build your reputation one project at a time.

Over time, build a brand by sharing your wins, becoming familiar at events, and creating helpful content to establish trust and attract your ideal clients.

Set Up Processes

Starting an SEO agency is exciting, but running it day-to-day is where the real challenge lies. SEO agencies thrive on strong systems. Without them, you’ll burn out fast.

Spend the time to work out:

• Client onboarding: Define how you bring on new clients efficiently.
• Client communication: Keep clients updated to build trust and retain them.
• Invoicing & payments: Automate billing to avoid cash flow issues.
• Project management: Use tools like Trello or ClickUp to stay organised.
• SOPs (Standard Operating Procedures): Document step-by-step processes to maintain quality.

The smoother your systems, the easier it is to scale (or take a week off to travel).

FAQs

Starting an SEO business comes with its fair share of questions, especially if you’re new to the game.

That’s why I’ve put together this FAQ section—to tackle some of the most common concerns and provide you with practical advice.

How Do I Know if I’m Well Suited to an SEO Business?

If you’re genuinely interested in the inner workings of search engines and the mechanisms involved in how people’s queries are catered to online, then running an SEO business might be right up your alley.

Remember, it’s not just about SEO skills per se. Running any service business means managing client expectations, handling logistics, and delivering results consistently. These are things you’re going to have to get good at.

If you already have a network or an audience, you’re in a strong position. If not, be ready to do the hard yards and build one from scratch.

Ask yourself:

• What’s my experience?
• What audience do I have access to?
• What do they need that I can deliver?

If the answers align, it might be time to dive in.

Is SEO Dead?

The death of SEO has been greatly exaggerated. While traditional organic SEO is transforming, what we’re witnessing isn’t death, it’s evolution.

I know people who were optimising for AltaVista and Yahoo, decades ago. Plenty did well with AOL, and we all know that a lot of people have made a lot of money from Google and Bing since then.

Search isn’t just a digital tool, it’s fundamentally human. From physical maps to modern search engines, we’ve always sought better ways to find information.

As the internet evolves, search engines will become more essential than ever. The SEO of tomorrow will look a little different from today’s, but the core principles stay the same.

Besides, real SEO isn’t about the links, the content, the tech, or the search engine. It’s about understanding what your audience needs and putting solutions in front of them, whether that’s via Google, Grok, Perplexity, ChatGPT or something else.

Remember, clients don’t hire you for “SEO.” They hire you for what SEO can deliver. Leads, sales, and growth. Your real job isn’t just optimising search engines—it’s giving them the results that will impact their bottom line.

Think about it differently, you’re running a business that solves problems, grows revenue, and helps clients thrive. The methods may change, but that mission never will.

Is SEO Easy to Sell?

Not really. Consider that you’re asking someone (who might have zero experience with online assets) to invest a significant amount of money into a strategy that takes months to show results.

Worse, there’s no ironclad guarantee it’ll work exactly how they hope. That uncertainty makes it a tough sell, especially for clients unfamiliar with the nuances of SEO.

That’s why I typically work with clients who have already seen SEO work well, either by doing a little themselves, or previously working with an agency or freelancer who got them results.

You might be wondering why they’d be looking to change agency. Often their results have dropped, they want to grow faster, or their current agency has become complacent.

These clients are usually brilliant. They know how SEO works, they just need someone with the expertise (or the bandwidth) to make it happen for them. They’re invested, not in blind hope, but in finding the right partner to get them to the next level.

What Does the Future of SEO Look Like?

After decades of Google dominating search, the SEO industry is shifting as alternative search engines and AI-powered tools emerge. While Google’s reign isn’t over, it’s likely to lose a subset of savvy users to these new platforms.

Traditional organic search will still have its audience, much like Facebook remains popular with certain demographics while younger users gravitate elsewhere.

The future of SEO lies in evolution, not abandonment. Traditional practices still have years of relevance but must adapt to a multi-channel, AI-enhanced ecosystem.

Your online presence as a whole is now more critical than ever. Off-site brand mentions, once primarily for link-building, are increasingly about establishing credibility with AI models.

The goal isn’t just to rank on SERPs—it’s to ensure LLMs and alternative search engines view your content as a trusted resource. The mechanics may change, but the core strategy of building authority and relevance remains timeless.

If you ask 20 friends where to buy your next car and 15 recommend the same dealership, you’ll probably buy from there too.

AI results are similar. If they regularly see Jase Rodley mentioned as a top SEO consultant, chances are they’ll include me in their results for that topic.

Build Trust, Deliver Results, Make Money

Growing at 8.7% per year, the SEO market is forecast to reach $157.41B in revenue during 2032. There’s still plenty of room in this market for new competitors.

Many businesses are stuck in outdated methods, leaving a gap for those willing to embrace new processes and technologies. SEO is changing, but change brings opportunity.

If you’re someone who values building real connections, understanding client needs, and delivering genuine results, there’s plenty of room for you in this evolving industry.

Whether it’s leveraging AI tools or adapting to alternative search platforms, the future belongs to those who innovate while staying grounded in what truly matters—helping clients succeed.

If you’re serious about starting an SEO agency, take the first step today. Pick your niche, define your services, and start building your portfolio. The best time to start was 2 decades ago. The next best time? Right now.