SEO for Small Businesses: Smart Investment or Just Another Expense?
As a small business owner, you know it’s critical to be smart with your finances. It’s what makes scaling your business possible—and ultimately, what determines your success. That’s why you’re selective with your investments. You want to be sure they’ll provide lasting value.
It’s a perspective that applies to all aspects of your business, including marketing, which you often feel conflicted about. On one hand, you know it’s necessary to reach potential customers and remain competitive, but on the other, it seems abstract and difficult to measure.
SEO, specifically, is a marketing service you’ve been cautious about. You get that it increases online visibility by bumping you up in Google search results, but you still wonder how the results stack up against the costs. Is the price really worth what you get?
Here’s what I can tell you for certain as an SEO consultant for small businesses—it’s a core aspect of any successful marketing strategy. Not just because it gets you seen in search results, but because it translates into real dollars for your business.
Today, I’ll show you why the cost of SEO for small businesses is incredibly reasonable when you consider the value it delivers, so you can make a confident decision for your future. Keep reading for the full breakdown.
Why SEO Matters For Small Businesses Right Now
Search engine marketing has evolved quickly in recent years, especially with the rise of AI tools like ChatGPT. As a result, search intent has become more nuanced. Users are increasingly frustrated with sifting through endless pages of AI-generated content, raising the demand for highly relevant, targeted material.
Small businesses, in particular, stand to gain a lot by sharing unique, personalized messages with their target audience. Potential customers are looking for alternatives to major box stores or online retailers, who often fail to connect on a personal level, reducing customers to numbers or statistics. By sharing authentic content that’s optimized to perform well, small businesses can ensure their message gets noticed and build stronger emotional connections with their audience.
The Cost of SEO for Small Businesses (And Why It Pays Off)
To accurately answer the question “Is SEO worth it for small businesses?”, we need to get clear on the numbers and the hard facts.
Here are 5 proven points to keep in mind:
Small businesses investing in SEO see an average ROI of 400% within two years. (Source)
Organic search is responsible for 53% of all website traffic, making it the most significant driver of online visibility. (Source)
Small businesses see an average return of $2.75 for every $1 spent on SEO. (Source)
49% of marketers say organic search is their top performing channel in terms of ROI. (Source)
68% of all online transactions initiate with a search engine. (Source)
These figures speak for themselves, proving that SEO is one of the best revenue-generating ways to market a small business. But to paint an even clearer picture, let’s take a look at what SEO costs and what a typical return on investment would look like.
We know that the average small business spends $500 on SEO each month. So, using the average return per dollar, here’s what an ROI calculation would look like:
$500 Per Month X $2.75 (Average Return Per Dollar) = $1375 Per Month in Return
Now let’s calculate what this would amount to over two years:
$1375 Per Month X 24 Months = $33,000
$33,000 X 4 (400% Average Increase Over 2 Years) = $132,000
And after deducting the total amount you’ve spent on SEO in those 24 months? You still walk away with $120,000!
What Kind of Return Can YOU Expect from SEO?
Based on the average calculations above, small businesses can expect to earn $120,000 in profit over two years by investing just $500 per month in SEO.
If we were to reduce that monthly budget to $250 you could still generate $60,000 in profit. And if you decided to bump it up to $800 per month (a healthy budget for a small business looking to generate significant results) you could expect to add $192,000 to your bottom line!
Disclaimer: All projected profits are calculated based on industry averages, and actual results may vary. Individual outcomes depend on various factors, including market conditions, algorithm updates, and other influencing elements.
SEO vs Paid Ads: Which is Better for Small Businesses?
It’s always a smart move to explore your marketing options—after all, you want to make sure your hard-earned money is going toward the best strategy for your business. Paid advertising is a popular alternative to SEO for small businesses. A lot of entrepreneurs like the idea of generating leads immediately and paying to appear at the top of search results. But when it comes to long-term results? That’s where paid ads fall short.
Here are 5 surprising paid advertising stats you may not be aware of:
70-80% of users ignore the paid ads in Google and focus on the organic results instead. (Source)
Organic search gets way more clicks than paid ads—27.6% of people click on organic results, while only 3.17% click on paid ads. (Source)
94% of clicks on Google go to organic results, while only 6% go to paid results. (Source)
Once an SEO strategy starts to produce results, costs per lead tend to be between 40-60% less than that of a PPC campaign. (Source)
SEO delivers a long-term ROI of 500%–1,300%, while PPC averages around 200%, making organic SEO the more cost-effective strategy over time. (Source)
These points confirm a simple truth: It’s better (and cheaper) to organically promote your business by investing in SEO services if you want to achieve long-term, sustainable growth.
But does that mean you should avoid paid advertising completely? Not at all! PPC ads can be a great option for short-term promotions, giving you a quick boost in visibility and traffic. They’re also a great way to build brand authority when paired with an organic SEO strategy.
The Price of Ignoring SEO for Your Small Business
We’ve talked about the reasons to spend on SEO. Now let’s turn our attention to how skipping it can negatively impact your bottom line.
Here’s what you need to know:
1. FEWER PEOPLE WILL VISIT YOUR WEBSITE
We know that 63% of all website traffic comes from Google. SEO for small businesses is an essential part of tapping into this stream of online visitors. It helps people who aren’t familiar with your business discover it. Without SEO, though, that chance is reduced to nearly zero.
2. SALES WILL SLIP THROUGH THE CRACKS
Earlier, I mentioned that 68% of all online transactions start with a search engine. I’ve also confirmed that SEO has higher conversion rates. Moral of the story? Google is where people go when they’re looking for products and services like yours. So, ignoring SEO or not giving it the attention it deserves? That’s money you’re leaving on the table.
3. IT’LL BE HARDER FOR POTENTIAL CUSTOMERS TO REMEMBER YOU
SEO provides your small business with consistent exposure. The more people see your name in search results, the more familiar and memorable your brand becomes. But if you’re not showing up? Your potential customers will find and build trust with competitors who are prioritizing SEO.
Invest in Your Success.
Work With an SEO Consultant Today.
The financial value of SEO is undeniable. It’s the smart, sustainable way to expand your reach and shine brighter online—but it doesn’t happen instantly. That’s why it’s so important to act quickly. The sooner you start, the sooner you’ll see real, lasting results.
Ready to partner with an experienced SEO consultant for small businesses?
Let’s connect and build a strategy that works for you.