This sentence may surprise many SEO agencies in Singapore.
Not many will be agreeable in this sentence because they always believe that there’s always a chance to make more money in providing SEO services to Singapore companies.
However, a lot of factors that are happening in Singapore. Whether is it macro point of view or micro point of view they are areas where we have to focus on to see and understand why the death of SEO agencies is already here.
Not consider covid-19 which happens from 2019, there are also other factors that really there for many years in Singapore.
One of the factor is that the number of clients that are doing SEO is actually not increasing. In fact Even if the numbers are increasing within the industry itself. There are so many competitor within the industry. Let’s say for example if there are 20 Wedding videographers there is doing SEO. And each of them is using an SEO agency to rank at the top page.
How many of the wedding videographers are they able to rank at the top three because 20 wedding videographer will not be able to squeeze in the top 10 in Google search engine.
This is simply impossible.
High Cost of Living
Second consideration we have to take into is the cost of living is very high in Singapore. Whether it is the rental of the office? Or even if you are using Virtual Office The cost of operating is still there.
And on top of that if the company is going to hire salesman, operation manager, SEO specialist to do all the individual SEO campaign, then the costs of operating will be even much higher especially bigger companies who need big space and they actually divide the SEO scope of work into many sectors.
That is to say that the person can be doing sales and other person can be doing the SEO operation and another thing you can also do on page SEO.
So the fact is that a lot of big companies or big SEO agencies, they are facing the heat.
Many SEO agencies or individual SEO specialist, they are pushing the SEO price to the rock bottom just to get customer for their SEO business and on top of that, they are also facing competition from many SEO companies from India who are charging easily USD99 per month.
Do you know USD99 is only 20% of what normal SEO agencies are charging in Singapore.
This is to say that if they were not able to fight head-on with the SEO prices, then the potential customer will go to the India SEO agency. Obviously, the SEO client had no idea that the Indian SEO agency will not able to deliver, but they will only realized that problem after 6-12 months later.
Which will be too late, I will write another article why the India SEO Agencies are not able to deliver, there are some technical reasons behind it.
Unable to Get Clients
Many SEO agencies are using the same method to get SEO customer. Many of them they are very technical savvy in terms of able to rank on the first page of Google.
However, the problem is that many of them they do not know how to acquire a new customer. They use telemarketing and they also used email marketing.
They use Facebook marketing with paid ads and they also use SEO to rank their page to the first page but bearing in mind that there are thousands and thousands of SEO agency in Singapore and everybody is doing the same thing.
So the question is: If everybody is doing the same thing and the number of customer is constant. How would they be able to get the customer and the pie will get lesser and lesser plus cheaper and cheaper!
And the SEO price of SEO services will get lesser and lesser and cheaper and cheaper in the as this goes on.
We have a big issue here, the total cost of operating will be much higher than the total cost of revenue. So eventually the SEO agency will close down or the person will move on to another company or other industries.
In view of the covid-19. He has created a big problem and killed a lot of business players (The clients) in the market, whereby a lot of companies were already in SEO prefer to cut their cost and not invest in SEO Services because they know that under this uncertainty even if they would rank at the top 10, they may not get any business inquiry at all.
How to solve the problem of the Death of SEO Agency
One method I can suggest is that for smaller players who are less than 5 person, I will suggest that in this period of covid-19, do not take any office. If you have an office already. Sublet or or cancel the rental.
There’s no choice because the ground is dry. Even if you try to maintain the office. It will be very difficult to break even. In this way you will be able to cut the rental and you’ll be able to save a few thousand dollars every single month.
If you have sales person, convert the salesperson to based on commission ONLY rather than the salary basis and give them a higher commission when they are able to convert.
This way, you will need to cut down your operating costs for this salesperson as much as possible.
And any activities related to the on-page and off-page if you are able to do yourself just do it by yourself.
So all you can always get somebody else to Outsource it and do it based on Project basis in this way. Your costs of operating per man will only increase when your sales increase
This will make your cost of operation to the minimum every month.
Another method is by collaboration.
Rather than you compete with other SEO company, join force with other agencies and come together to share the cost of operating and share the cause of your resources. You may even share the cost of the office if you really need office.
When you come together 1+1 =3
Remember that each of the SEO agency owner specialized in different areas, some maybe good in Sales, so maybe good in On-page, some may have money, some may have the business network, tapped into each resources and you will be able to synergized together.
Remember that the number of client is constant, generally, it will not shift too much. Hence, by joining force together, you will be able to generate more profits instead.