“GTM Efficiency” is the buzzword of the day. At a high level, it’s just another way of saying: “which marketing channel is gonna give us the most bang for our buck?”
As a SaaS marketer, you have a plethora of options as to where to allocate dollars. ABM. Partner-led growth. Hiring more SDRs. Paid social. SEO. Google PPC. Trade shows. Conferences.
Knowing how to prioritize spend across these channels is what good CMOs are paid to do.
As an SEO agency, we have a few thoughts about how much is the right amount to spend on SEO.
Let’s break it down.
Recommended SEO Budgets for SaaS Companies by Strategy
Not all SaaS companies approach growth the same way, and this influences how they should allocate marketing budgets—especially when it comes to SEO.
A SaaS company’s go-to-market strategy (GTM) generally falls into one of three types:
1 – Product-Led Growth (PLG)
2 – Sales-Led Growth (SLG)
3 – Marketing-Led Growth (MLG)
Your recommended spend on SEO (content + links + labor time if doing in house, or agency cost if outsourcing) as a percentage of revenue depends on which type of strategy you are pursuing.
Product-Lead Growth (PLG)
In a product-led model, the product itself is the primary growth driver.
Think of Slack or Dropbox, where the product’s ease of use and adoption spreads organically as more users share and recommend it.
PLG companies often rely on freemium models and word-of-mouth, which can be powerful but also risky if not managed with solid inbound marketing.
For PLG companies, SEO should still be a foundational strategy to capture organic interest from potential users and drive sign-ups. A minimum of 7% of revenue should be dedicated to SEO, especially to create high-quality content and rank for product-specific keywords.
PLG companies often scale faster with organic reach, so this SEO investment aligns perfectly with their growth mechanics.
Sales-Led Growth (SLG)
In SLG, sales teams play a central role.
Companies like Salesforce are a great example, where personal relationships and consultative selling are the core of the acquisition strategy.
For SLG SaaS companies, SEO can support the sales team by driving inbound leads, nurturing prospects, and guiding potential customers through a long, complex buying cycle.
SEO spend in SLG SaaS should focus on lead-gen content, case studies, and highly-targeted landing pages. Bottom of funnel type content that will help the sales team sell.
For this strategy, we also recommend that at least 7% of revenue should be earmarked for SEO to create resources that resonate with decision-makers and support each stage of the sales cycle.
SLG companies may not need as much top-funnel traffic, but they should optimize for high-quality, intent-driven searches.
Marketing-Led Growth (MLG)
MLG relies heavily on marketing channels to generate leads and drive awareness.
HubSpot is a textbook MLG company, using a powerful SEO and content marketing strategy to draw in traffic, capture leads, and nurture them through an inbound funnel.
For MLG SaaS companies, SEO is non-negotiable and should claim a larger chunk of the marketing budget.
If you’re an MLG SaaS, SEO is critical to establishing brand authority, expanding market reach, and creating educational content that converts visitors into leads. Aiming for 10-15% of total revenue on SEO is ideal for MLG companies.
This substantial investment fuels the content creation, keyword research, and link-building efforts that make up a competitive SaaS SEO strategy.
How to Build Your SaaS Marketing Budget
Getting your SaaS marketing budget right means being clear about your goals, strategy, and where SEO fits into the bigger picture and marketing efforts.
Here’s a step-by-step look at how to build a realistic and effective SaaS marketing budget.
- Understand Your Sales Cycle
SaaS companies with longer, technical sales cycles (typically over six months) need an SEO strategy that leans heavily on full-funnel content marketing to guide buyers through a detailed consideration process. For short sales cycles, a greater portion of the SEO budget can go toward direct conversion efforts like landing pages and targeted keywords. - Identify Your Target Market
Are you targeting early adopters in a competitive niche, or do you operate in a well-established market? For startups, identifying keywords that aren’t overly competitive is crucial. If your target market is online-savvy, go all-in on SEO, but if not, you may need to complement SEO with outbound tactics like email marketing or paid ads. - Set Your Revenue and Customer Goals
Set clear monthly and annual revenue goals to guide your budget allocation. Define how many new customers you need each month and determine the traffic required to reach this number. - Estimate Costs for SEO Activities
Conversion rates, close rates, and CPCs for targeted keywords on paid search can all guide your SEO budget. Calculate the monthly traffic you’d need for your target conversions, then use the CPC as a benchmark. By comparing SEO costs to PPC, you can build a data-backed case for why SEO can deliver higher ROI over time. - Consider Marketing Budget Variances by Growth Model
The size of your marketing budget as a percentage of revenue should reflect your growth model—PLG, SLG, or MLG. PLG and SLG may keep budgets on the lower end, while MLG SaaS businesses can benefit from larger investments.
How Much Should B2B SaaS Companies Spend on SEO?
For B2B SaaS companies, allocating the right budget to SEO isn’t a “nice-to-have”—it’s a critical component of your marketing strategy.
Data shows that high-growth SaaS companies invest heavily in marketing, often dedicating 10-15% of their total revenue to this function. But within that, SEO deserves a significant slice because of its unmatched ability to drive organic, sustainable growth at a lower CAC over time.
So, how much of your marketing budget should go toward SEO? Let’s dig into the numbers.
Recommended Marketing and SEO Budgets for SaaS Companies by Size
On average, successful B2B SaaS companies allocate around 10-15% of their revenue toward marketing. But that’s just the top layer. Within this marketing budget, 15-30% should be devoted to SEO, depending on your growth model, target audience, and product complexity.
SEO is an ongoing, long-term investment that lays the groundwork for consistent lead generation and brand visibility in organic search, making it invaluable for scaling.
Let’s look at a few real-world scenarios to see how these percentages play out in dollar amounts:
- Small SaaS Company ($1M Annual Revenue):
- Total marketing budget (10-15%): $100,000 – $150,000 annually
- SEO allocation (15-30%): $15,000 – $45,000 annually, or about $1,250 – $3,750 monthly
- Mid-Sized SaaS Company ($10M Annual Revenue):
- Total marketing budget: $1M – $1.5M annually
- SEO allocation: $150,000 – $450,000 annually, or around $12,500 – $37,500 monthly
- Large SaaS Company ($30M Annual Revenue):
- Total marketing budget: $3M – $4.5M annually
- SEO allocation: $450,000 – $1.35M annually, or about $37,500 – $112,500 monthly
These numbers might sound high, but the returns from a well-executed SEO strategy can far exceed the initial costs, especially when you factor in SEO’s compounding benefits over time.
SaaS companies often deal with long sales cycles, highly informed buyers, and a competitive landscape—all factors that demand a robust SEO strategy.
By investing 15-30% of your marketing budget in SEO, you’re not just aiming to improve rankings; you’re positioning your company as an authority in your field, ensuring your content meets high-intent search queries, and providing valuable information that builds trust with prospects.
SaaS SEO Budgets vs. Other Industries
Comparing SaaS SEO budgets with other industries can clarify the unique advantages SEO brings to SaaS businesses. Unlike eCommerce or luxury markets, where PPC and social media marketing often generate quick returns, SEO in SaaS is about building a long-term, sustainable pipeline of leads.
For example, industries like manufacturing might rely on trade shows and networking over digital channels, while SaaS companies gain more value from an online presence optimized for organic search.
In SaaS, benchmarks that apply to physical or retail industries shouldn’t be considered—SaaS SEO budgets should focus on high-quality content, link-building, and targeted keyword strategies to capture ongoing demand.
When You Can Invest Less in SEO
While SEO should be a significant focus for SaaS, there are times when you might dial it back slightly.
- Ecommerce-Driven SaaS Products
If your SaaS product leans toward eCommerce or luxury, where purchases are high-value and infrequent, PPC campaigns may drive faster returns. In this case, SEO still matters for authority, but paid ads may work better for quick, targeted conversions. - Highly Technical Software
For SaaS products that are highly technical and require in-depth customization, SEO may play a limited role. Instead, a combination of content marketing and direct sales could yield stronger results. This is particularly true for products that involve long sales cycles and specialized knowledge.
When You Should Invest More in SEO
If your SaaS product allows customers to sign up and start using it immediately or if lead generation is central to your business, invest heavily in SEO.
- Self-Service SaaS Products
Products like Trello or Grammarly, which users can adopt instantly, benefit from high SEO investments. An optimized website and helpful, search-friendly content draw new users to explore and try the product on their own terms, reducing friction in acquisition. - B2B SaaS Focused on Lead Generation
If your SaaS is focused on filling a sales pipeline with qualified leads, SEO should be a major budget priority. This is essential for MLG and SLG SaaS models, where targeted content and strong SERP presence make it easier for potential customers to discover and engage with your brand.
Let’s Actually Do Some Math
If you’re serious about understanding the financial impact of SEO on your SaaS growth, it’s time to break down the numbers.
Creating a data-driven SEO budget isn’t just about picking an arbitrary percentage of your revenue; it’s about setting goals, calculating necessary traffic, and assessing what kind of SEO investment will get you there.
Let’s run through a straightforward math exercise to show exactly how your SEO budget translates to growth, using numbers that make it all click.
Step 1: Set Your Revenue and Customer Acquisition Goals
To start, define what “success” looks like in real numbers. Let’s say your SaaS business wants to add 50 new customers each month. Knowing this goal gives you a concrete benchmark to work with, guiding the rest of your calculations.
Now, determine your average revenue per customer (ARPC) and customer lifetime value (CLV). If your ARPC is $1,000 per month, 50 new customers mean an additional $50,000 in monthly recurring revenue (MRR).
Multiply this by your average customer lifetime (say, 24 months), and you’re looking at an added $1.2 million in lifetime revenue from these 50 customers.
Step 2: Calculate the Traffic You Need
Next, let’s figure out how much web traffic you’ll need to reach those 50 new customers. Start with your conversion rate—the percentage of website visitors who actually sign up for a trial, request a demo, or become paying customers.
If your conversion rate is 2%, this means you’ll need 2,500 qualified visitors per month to convert 50 of them into customers (since 2% of 2,500 is 50).
Step 3: Estimate the Cost of Acquiring This Traffic
Now, let’s calculate what it would cost to acquire this amount of traffic through different channels. One way to gauge the cost of driving traffic is to look at cost-per-click (CPC) rates for your target keywords in Google Ads.
Let’s assume the average CPC for your target SaaS keywords is $10 (a realistic rate in a competitive B2B market).
If you need 2,500 clicks to meet your customer acquisition goal, then paying for this traffic through Google Ads would cost you $25,000 each month (2,500 clicks x $10 CPC).
With this paid advertising benchmark, you now have a reference point: $25,000 in monthly paid ads is what it would take to generate 2,500 visits and hit your acquisition goals.
Step 4: Determine the SEO Investment Needed to Achieve Similar Results
SEO gives you a sustainable path to achieving the same traffic goals without paying for every single click. However, SEO isn’t free, and it’s also not an overnight solution. It requires an initial and ongoing investment, which, over time, can yield more traffic than paid ads at a lower cost per lead.
Over 6-12 months, your SEO efforts can start delivering a similar volume of qualified traffic, but unlike PPC, this traffic keeps coming even if you pause spending.
Step 5: Calculate the Potential Return on SEO Investment
To truly understand the value of SEO, compare the customer acquisition costs (CAC) from SEO versus paid ads. With PPC, you’re paying $10 per click to generate 2,500 visitors. With SEO, once you’re ranking, those same visitors come at a fraction of the cost since you’re not paying for each click.
Over time, SEO can cut your CAC significantly by providing consistent, high-intent traffic without an ever-increasing ad budget. This reduced CAC has a compounding effect on your customer lifetime value (CLV), as each customer acquired through SEO contributes to long-term revenue without needing to be “re-purchased” each month, as they would with paid ads.
How Much Does a SaaS SEO Agency Cost?
Investing in a SaaS SEO agency is a game-changing step, but it’s important to know what you’re getting—and what to expect in terms of costs. For reputable agencies in the U.S., you’re looking at a monthly spend ranging from $5,000 to $20,000.
Yes, it’s a significant investment, but choosing the right agency can be transformative, turning organic search into your top-performing marketing channel.
Let’s break down what you should expect from an SEO agency at this price range, and what separates the ones worth your investment from the ones that could just be wasting your time and budget.
1. More Than Just an Audit—Proactive SEO Strategy
If an SEO agency offers a one-time audit and calls it a day, keep looking. A successful SEO strategy is not static; it needs to adapt to changing algorithms, new competitor strategies, and evolving customer search behaviors.
Why it Matters: SaaS is an ever-evolving industry, and relying on a one-time SEO audit is like setting your GPS once for a cross-country drive without any updates. The right agency will actively seek new content opportunities, refine your targeting, and adjust tactics to keep your rankings stable and growing.
2. Specific Recommendations Tailored to SaaS
Generic SEO advice isn’t going to cut it for SaaS companies. A good SaaS SEO agency dives into the specifics of your product, audience, and competitive landscape to craft tailored recommendations.
This includes everything from keyword prioritization based on buyer intent to creating high-value content assets like comparison pages, case studies, and technical guides that match what your customers are searching for.
Red Flag: If an agency starts with a cookie-cutter “SEO package” that doesn’t consider the unique demands of B2B SaaS, they likely won’t deliver the high-value organic traffic your brand needs. Instead, look for an agency that has a track record with SaaS clients and understands the unique challenges (and opportunities) that SaaS marketing presents.
3. Long-Term Focus on ROI, Not Just Rankings
High rankings are great, but if they’re not driving revenue, they’re just vanity metrics. A strong SaaS SEO agency keeps the end goal—revenue growth—front and center.
Look for agencies that focus on metrics like conversion rates, Customer Lifetime Value (CLV), and Customer Acquisition Cost (CAC). This approach ensures that the SEO efforts aren’t just attracting traffic, but bringing in leads that convert and contribute to long-term growth.
4. Transparent ROI without Empty Promises
Promises of “guaranteed #1 rankings” are a red flag. No one can guarantee exact positions on search engines, and anyone who claims otherwise isn’t being transparent. Reputable agencies will provide past case studies and client results as proof of their expertise.
While they can show examples of SEO ROI they’ve delivered for similar SaaS clients, they’ll avoid guaranteeing specific outcomes since SEO is influenced by factors beyond an agency’s control (like Google’s algorithm changes).
5. SEO Experts—Not Just Account Managers
When paying $5,000-$20,000 a month, you deserve to work directly with SEO experts who understand the nuances of SaaS, not just an account manager relaying information. Ask who will be handling your account day-to-day. Ideally, it should be SEO specialists with experience in B2B SaaS, not just generalists or junior staff. This ensures you get the benefit of their direct expertise, not watered-down insights.
Ready to Grow? Set Your SaaS SEO Budget with Confidence
Allocating the right SaaS SEO budget can feel overwhelming, but with a clear strategy and focus on ROI, it’s a high-impact investment in long-term growth. Whether you’re PLG, SLG, or MLG, putting 7-15% of revenue into SEO can create an organic lead engine that pays off month after month.
Are you ready to boost your lead generation and drive sustainable growth with a smart SEO strategy?
Let’s talk about how our SEO experts can help you turn your budget into revenue. Reach out today to start building your custom SEO strategy!
