Is it still worth starting an SEO agency—or has the moment passed?
With AI tools flooding the market and businesses more aware than ever of digital marketing, it’s a fair question. You may have seen agencies claiming five-figure months with minimal effort, but behind the scenes, things are more complex. And that’s a good thing. SEO remains one of the most sustainable services in digital marketing—but only if it’s approached with honesty, planning and an understanding of where the work actually lies.
So, let’s get into the real picture: how profitable is running an SEO agency in 2025? What does it take to succeed, and what are the risks?
Profitability: Yes, It’s There—but It’s Earned
There’s no denying it: there is still strong demand for SEO services. Businesses of every size want visibility, more enquiries, and long-term search engine traffic. That means SEO is not going anywhere. But profitability isn’t automatic.
Success comes from understanding your overheads, pricing your services appropriately, and building efficient systems. It also means selecting the right mix of services and clients. A poorly planned agency can burn through time and cash. A well-run one can produce excellent margins.
The Real Costs of Running an SEO Agency
Tools and Software
Even if you’re a solo consultant or just starting out, SEO software will be a recurring cost. Most professionals rely on a stack of platforms like:
- Ahrefs or SEMrush for research and link tracking
- Screaming Frog for site audits
- Surfer SEO or Clearscope for content optimisation
- Google Analytics and Search Console for performance monitoring
Most tools cost between £50 and £300 per month. At scale, especially with team access, that figure increases.
Staff and Freelancers
You may start solo, but building a proper agency usually means hiring or outsourcing. Whether you’re paying in-house salaries or bringing in contractors, labour will be one of your biggest outgoings. That includes content writers, technical SEOs, account managers, and link builders.
Don’t forget training. SEO changes fast. Google updates, AI integration, and new ranking factors all require staying current—and that takes time and money.
Branding and Marketing
SEO agencies need their own online presence. A well-built site, helpful content, and active social media profiles signal professionalism and attract enquiries. Content marketing and outreach also cost time and/or money.
You’ll also need a clear market position. Are you offering local SEO for tradespeople? White label delivery for other marketers? High-end technical SEO for ecommerce sites? Your offer must be relevant and easy to understand.
Where the Revenue Comes From
Monthly Retainers
Retainers are the foundation of most agencies. They offer predictable income and help build longer-term relationships. Typical retainer packages might include on-page work, content strategy, reporting, and a set number of backlinks or hours.
Retainers often range from £750 to £3,000+ depending on the complexity of the work and size of the client.
One-Off Projects
These include SEO audits, website migrations, or content plans. While less predictable than retainers, they offer a useful source of additional income—especially during quieter periods.
Consulting and Training
Some clients prefer to do SEO in-house but need strategic input. Offering consulting calls, workshops, or custom training packages can create an income stream that requires less execution and scales more easily.
Affiliate and White Label Opportunities
If your agency gets good traffic, you can recommend tools and services via affiliate links. You might also offer SEO services for other agencies to resell—what’s known as white label delivery. This model can be profitable if you’re comfortable operating in the background while someone else manages the client.
What Do the Numbers Look Like?
Let’s break it down with a simple example:
- Monthly costs:
£2,000 on staff/freelancers
£500 on tools
£500 on marketing and admin
Total: £3,000 - Clients:
Five clients paying £1,500/month = £7,500 revenue
That’s £4,500 gross profit, or a 60% margin. With more clients, that margin can improve further, especially if you’ve systemised your delivery.
Agencies running lean and smart have been known to reach 70–80% gross margins once they scale.
Retention Is the Secret to Long-Term Profit
Getting a new client is expensive. Keeping one is far more cost-effective—and profitable.
The best agencies invest in:
- Clear, consistent reporting
- Realistic goal setting
- Transparent communication
Even modest SEO progress is easier to appreciate when it’s presented well. This also helps manage client expectations, reducing churn and unnecessary pressure on your team.
Scaling Without the Chaos
Scaling doesn’t have to mean becoming a large agency. Many profitable SEO companies grow through smart systems, not more staff.
Here are a few practical ways agencies scale in 2025:
- Niche down: Serving one industry makes processes faster and sales easier
- Productise your offer: Fixed packages reduce the complexity of each project
- Outsource specialist tasks: White label providers or freelancers help you avoid over-hiring
- Build recurring revenue: Retainers, rank-and-rent models, and affiliate income support long-term stability
What About AI?
AI has changed how content is created and analysed—but it hasn’t removed the need for human strategy. Clients still need to understand:
- What their audience is searching for
- How to position their site against competitors
- Why their traffic has dropped (and what to do about it)
AI has made some tasks easier, but strategic thinking is still what clients pay for—and it’s not easily automated.
Who’s Making a Profit?
The numbers vary, but here’s what real SEO professionals are seeing:
- Solo consultants: A one-person agency with five retainer clients at £1,000/month can earn £60,000–£70,000/year, especially with low overheads.
- Small agencies: Ten to fifteen clients on mixed retainers and projects can generate £200,000–£400,000/year, especially with outsourced delivery.
- Specialists: Niche consultants or technical experts often charge more, especially when working with ecommerce or SaaS brands.
The most profitable agencies aren’t the largest—they’re the most focused.
What Can Get in the Way?
SEO agencies face challenges, including:
- Client churn
- Changing algorithms
- Price pressure from cheaper providers
- Time lag between implementation and results
- Difficulty scaling bespoke work
Profit depends on handling these problems effectively—through standardised delivery, clear contracts, and ongoing learning.
Does Experience Matter?
Absolutely. More experienced SEOs:
- Command higher rates
- Work more efficiently
- Attract better-fit clients
- Build repeatable systems
Income data backs this up:
- Less than 2 years: Often under £27,000
- 5–10 years: £38,000–£57,000
- Over 20 years: £150,000+
Like SEO itself, your income compounds with time and effort.
Final Thoughts
Yes, SEO agencies can be profitable in 2025. But this is not a passive income side hustle. It’s a real business, with real moving parts.
Those who succeed do so by:
- Knowing their numbers
- Pricing with purpose
- Delivering consistent value
- Focusing on client retention
- Adapting to change, including AI and market trends
SEO remains one of the few digital services where work done today can continue delivering results—and income—months or even years later.
Done right, it’s not just profitable. It’s sustainable.
Need help growing your SEO business or planning your next step?
At Search Engine Ascend, we offer clear, honest advice on how to build a viable, ethical SEO agency. Whether you’re freelancing, scaling up, or somewhere in between, we’re here to support you with experience-backed insights—no fluff, no clichés.
