I chatted with a friend in the industry this evening who signed up a consulting client several months ago. My friend has been in touch with the client several times about starting the work, but apart from a couple general questions, they've never used the consulting time they purchased. I was immensely curious about the details and luckily, my friend could share a few specifics.
The consulting rate is above $300/hr and they're buying in excess of 10 hours a month (relatively common in the industry). But, my friend has a suspicion about why they client isn't using their time, yet still wants to continue the contract. Her theory is that the client only purchased her time to get her under a non-compete agreement for 12 months. Apparently, she had just started talks with another player in the same SERPs when this client suddenly signed on. With their agreement in place, she could no longer offer services to the second client and referred them elsewhere. Coincidence, maybe? But she seemed to have some good (unshareable) reasons and evidence that the client who signed knew about the other.
What do you think? Is it worth spending thousands of dollars each month to keep a particular SEO away from the competition? Any similiar experiences out there?
Very interesting post.
Rand ... are you thinking what I am thinking??? You need a section on your site called "Stay Away Fee" - SEOMOZ will stay away from helping your competitors for a small fee. ;-)
But seriously in the online and SEO world, I think it's just silly. There are so many SEO companies out there that can actually produce results that you can't simply go and buy them all. They are wasting their money.
My question is, if they got the SEO expert now.... why don't they utilize his expertise and try to stay far ahead of the curve in the SEO performance?
Since the original company paid for the relationship and heard of the competitor looking there may be a very valid reason.
The SEO company built up the skills and expertise in the niche and applied it to the original company. If the second company signed on, they would be getting the same tricks that the original company.
However, if they needed to hire a new company, even if the new company is good, they will attack the problem from a different angle and even if their tools are as good, they are not going replicate and weaken the original companys SEO.
If the niche was profitable enough, it is probably an effective strategy. However, I would probably have them do some work for the money.
I think that SEO's core ideology and greatness come from the fact that is it "theme based". Any skilled SEO have a theme tagged on their behaviors and resources. Any skilled SEO could be put in a directory of seo's, and I think that this directory is relative to the person origins & location (fields of expertise). (don't think I'm trying to say we're just numbers and have a 9digit ID on our forearm, I just mean that there is place for everyone, and the fact that by sharing our thoughts and knowledge, everyone gets better at what they do: their own recipe of delivering results to customers).
I think there is a niche for every SEO as their is a niche for any kind of taste. Some sweet, some sour.
I'd be very surprised if that were the reason.
I've had tons and tons of clients through the years who purchase full SEO or consulting, and simply never use it. It's not uncommon at all, and those were all without any sort of non-competes being signed.
My theory is that some boss in the company's want to be assured that they've hired an SEO. As long as that's done, it doesn't actually matter if they do any work!
So true yet so sad :D
Starting today, I will be accepting to use, for my customers, any spare hours that any "PAID NOT TO DO SEO" volunteer has remaining with their own clients. We need some help here ;)
I really don't think that is the reason. It does not make any since unless their competitor is just stupid and can't look around for another SEO. I think what is more likely is that the SEO firm kept asking for them to do something and they just never could get time to do it or simply forgot about it. I have paid for services and just never got around to using them. I paid for a whole year of AOL before I realized I forgot to cancel the free subscription. The SEO's emails might have just got burried in a busy email box.
I'm a spammer and my URL is... www.seologistics.com
(edited by Rand... obviously)
I absolutely do think it is worth it. We worked for a client in a particular industry for about 2 years and, for the purposes of being as completely arrogant as possible, dominated it.
But, they wanted time to secure repeat / long-term customers, not just new search engine referrals before they let us go. So they kept paying up.
We built up so much expertise in that particular industry over that time that since the time we stopped working with that particular client, we have begun chipping away at their search empire one client at a time.
The person who hired this SEO has more money than they know what to do with... and those SERPs must be extra rich. I think that I would put the SEO to work on Project #2, just to be using the spend.
I've seen it done with lawyers in divorce cases. In a city of, say, around 500,000 there are often only a dozen or so really good divorce lawyers. For $1000 retainer per, you can keep your spouse from getting the real killers which is chump change when you are talking about millions.
But in SEO? I can't really see it being worth it unless it's a particular niche where the SEO has tons of connections. But even if it is the case, is it bothering her to get paid to not work?
I'ev never experienced this and think it's amusing to say the least.
If I were in the same spot, I'd certainly be asking myself how far I could push their fees before they lost interest in my exclusive lack of involvement. :)
That's happened with the company I work for before, although it was once we'd completed work. The client signed for another year, booked consultancy time, and never used it.
I'd just like to add that if any companies want to pay me not to work for their competition, my non-compete rates are very competitive :)