Simple AI SEO Agency Business Plan

In this post, I’ll walk you through the process of creating a business plan for your new AI SEO agency. As someone who started as an SEO freelancer in 2016 and built a seven-figure agency within three years, I’ve got the experience and expertise to guide you on this journey.

The Benefits of a Business Plan

A well-crafted business plan will keep you focused and aligned with your goals, whether they relate to revenue, client acquisition, team growth, or funding.

By forecasting your client acquisition costs, pricing, and cost structure, you can estimate your profit over the next several years based on your strategy. Think of it as a roadmap to help you reach your destination.

The Changing Landscape of SEO

Before AI, SEO agencies relied heavily on content writers to produce the vast amounts of content needed to rank well on search engines. The first tasks to be outsourced were usually time-consuming but straightforward, such as citations, link building, and web development.

However, with the advent of AI, the game has changed. You no longer need an army of content writers; instead, you need skilled editors who can refine AI-generated content and add the unique perspectives that search engines crave. This is especially true in light of Google’s March 2024 update, which aimed to combat the flood of low-quality, AI-generated content.

Crafting Your Business Plan

Client Acquisition

The first step in creating your business plan is to determine who your target clients will be and how you’ll acquire them. Consider the following:

1. Local vs. National: Will you focus on local companies in your area, or will you target businesses in a specific niche nationwide?
2. Upwork: An excellent starting point for landing your first few clients, particularly for companies looking to rank nationally.
3. Networking: Attend Chamber of Commerce events and join local business organizations to connect with potential local clients.
4. Paid Ads: Utilize Facebook, Google, and YouTube ads to reach your target audience.
5. Cold Outreach: Send personalized emails and messages on LinkedIn and Facebook to prospects, including a Loom video for a personal touch.
6. Brand Building: Establish your agency’s presence through your website and social media channels.

Competitive Analysis

Research your competition to gain insights into their client acquisition strategies. Look for clues such as their organic search rankings, social media presence, and paid ad campaigns. Success leaves clues, so use this information to inform your own plan.

Your Unique Selling Proposition

Develop a compelling offer that sets you apart from your competitors. With AI, you can deliver stronger results at the same or even higher price points than traditional agencies. Focus on the benefits of your AI-powered approach, rather than competing on price alone.

Service Offerings

Determine the specific SEO services and products you’ll offer based on your target audience’s needs. Some options include:

• Website structure optimization
• Content production and optimization
• Keyword analysis
• External link acquisition
• Citation building
• Google Business Profile optimization

Pricing Strategy

We recommend using scope-based pricing, where you promise to deliver a fixed set of services each month for a set price. This approach improves client trust and longevity compared to “black box” pricing, where clients pay a monthly fee without knowing exactly what you’re doing.

Marketing and Sales

Highlight the benefits of your AI-powered SEO approach in your marketing materials. If you have existing case studies, showcase them to demonstrate the results you can achieve. Consider offering lead magnets, such as AI-generated keyword research or content gap analysis, to entice potential clients.

Operational Plan

Outline your daily operations, including the roles and responsibilities of your team members. Your first hires will likely be editors who can interact with AI to refine content and perform AI-based analysis. Determine which tasks you’ll outsource to freelancers and which you’ll handle in-house.

Financial Plan

Project your agency’s financial performance by considering the following factors:

1. Team Size and Compensation: Determine how many team members you’ll start with and their salaries or hourly rates.
2. Freelancer Costs: Estimate the costs of outsourcing tasks like link building and web development.
3. Scope of Work: Define the typical scope of work for each client and calculate your costs and pricing accordingly.
4. Runway: Calculate how long your agency can operate without any clients based on your available funds and monthly expenses.
5. Paid Ad Budget: Allocate a budget for paid advertising campaigns, if applicable.
6. Client Retention: Estimate the average length of time you expect to retain each client (e.g., 6-9 months for a new agency).
7. Client Manager Capacity: Determine how many clients a single client manager can handle based on the complexity of the engagements.

Execution Roadmap

Create a timeline with clear milestones and deadlines for launching your AI SEO agency. Assign accountability for each task to a single person to ensure progress. Identify potential risks and develop contingency plans to mitigate them.

Leveraging AI to Create Your Business Plan

Don’t forget to use ChatGPT to help you develop your business plan. By providing it with specific prompts and having it roleplay as an expert with extensive experience, you can gather valuable insights and guidance.

Some useful prompts include:

• “What do I need to know to start writing a business plan for an SEO agency?”
• “What’s a reasonable pay range for a client manager at an SEO agency in [your location] with [number of employees] serving [target audience]?”
• “What are some key risks to include in an SEO agency business plan? Please include a short description of each one and give options for risk mitigation.”

Once you have a draft of your plan, you can even ask ChatGPT to analyze it for mistakes, oversights, and areas for improvement.

Take Action Today

The best time to start building your AI SEO agency is now. Use the prompts provided in this post to begin crafting your business plan with the help of ChatGPT. If you find yourself hesitating, leave a comment below with your reason, and I’ll reply with some motivation to help you overcome that obstacle.

Let’s harness the power of AI to revolutionize the SEO industry together!