I just found a great article on hiring an external SEO resource on Entrepreneur.com. I generally agree with this article but made some comments in red on this guy's thoughts.
1. What ranking guarantees do you provide?
If the answer is anything but "none," look elsewhere. You might tell them you heard a page one ranking can't be guaranteed, since nobody owns the search engines, except search companies. A superior search firm may add that while ranking is important, keyword research, relevant traffic and a steady increase in traffic that turns into sales are more important. Don't be dazzled by hype, a known brand or a professional-looking site. Stick to your guns, ask questions and get references.
Expectations can always be agreed. I always look to bonus SEO’s on the positions they gain for my chosen keywords. SEO’s will argue there are many keywords to go after but don’t be afraid of setting expectations on certain keywords and bonus your SEO contractor on these terms. Guarantees should be given but definitely reward your guy for good work. Set some clear targets and make sure you remove the bonus if the keywords drop in ranking at any point.
2. Are you going to make changes to my website?
Changes are crucial for SEO, especially changes to content and structure within your site. If you have a lot of graphics, flash and complex navigation with pull-down menus and hierarchical trees that spiders can't follow, you have a serious problem. Visit some of the sites they have optimized and see what SEO tactics they have applied. Conduct keyword research using the free tools at Overture suggestions and think about content you could write for your website today using popular, searched keywords.
Changes will almost certainly need to be made. If you have a content management system offer your SEO access to this. The site can appear on staging.yoursite.com if you speak to your webmaster nicely. From here the SEO can make the changes, get your approval and push the site live when you are both happy.
3. What is your approach to linking?
Link programs are key to long-term success using SEO. PageRank, a site voting system from Google, was created to measure importance via link counts (the number of links pointing to you) and link reputation (what the links say about you and your keywords). If you hear about proprietary link programs and custom software, find out if the firm belongs to or uses any FFA (free for all) link exchanges. Honest SEO companies will let you see every step of their approach, including weekly update lists for links. They should provide a detailed link analysis and tell you where your competition stands and what steps they would take to get links from topical sites, directories and social networks. It's difficult to determine the number of links required, but the firm should provide competitive link research and analysis.
Link building is the key driver behind your search strategy. It is important you are comfortable with the SEO’s method of obtaining links. Ultimately great content will get you natural links, but where producing lots of fresh content is not possible it may be worthwhile contacting other sites and asking them to link to you. SEO’s will sometimes ask for a link building budget agree this at the start of the campaign and you’ll get no nasty surprises after you’ve signed the contract.
4. What reporting and overall communications will I receive?
A professional SEO firm will have a workflow in place for client/vendor deliveries and overall expectations. Depending on the type of project, more work may happen in the earlier months, but it's still very import for you to understand all changes, when they are applied and for what reasons. You should receive ranking and analytics reporting weekly, monthly and quarterly. The most important thing is that you understand the reports and that the strategy is being applied and adjusted. SEO takes time and is a never-ending task.
5. What does your pricing model include and what other services do you offer?
The firm should provide a clear description of deliverables and pricing up front. Many make this an evasive exercise, but it should be clearly explained and not "sold." Professional firms will show you how value and ROI go hand-in-hand. Some firms only provide SEO services; others provide PPC, web analytics, multi-variate testing, e-mail marketing, social media optimization (blogs, videos and podcasts), linking and more. A company that provides more complete search marketing services could help you save money by serving as a one-stop shop.
Its important you are clear on what you’re hiring an SEO for. Usually its to boost your listings in the natural search part of the listings. If your SEO is offering you PPC listings, then thats a different concept all together where you will pay every time someone clicks on your ads in the search engine. For me hiring an SEO is all about building quality inbound links from other websites, producing original content and ultimately giving you lasting, natural search results.
6. Why is your own PageRank low?
Sometimes SEO websites display a lower PageRank, but appear very well put together with a sound design and relevant, useful information. It could be a new site or a recent domain shift. Or the owners may be busy building client sites rather than optimizing content and working on link strategies. It doesn't necessarily mean you're dealing with people that aren't experts.
Hmm, I’d be a little worried if my SEO had a professional site with no PageRank. If you’re SEO has a PageRank of 5 or above, he’s working hard on building his own links. If you’re looking for comfort from your SEO, check his listings for ‘seo’ or ‘search engine optimisation’ and see how he’s doing himself. If he’s ranking well, it is a good sign you’re getting in bed with the right guys. Alternatively if he has not worked on his own site, ask for examples of other sites he has worked on and which keyword rankings he has achieved. Don’t be afraid to call those sites and ask how they have found their rankings working with the SEO.
7. Who are some of your competitors?
An honest firm will share the competition and provide details. If the pending relationship isn't a match, they might even refer you to another SEO firm. That isn't as common, however, unless a partnership or referral arrangement has already been established.
8. What are your qualifications?
Time in business doesn't necessarily mean better SEO; you'll have to decide for yourself. But learning about the staff and their qualifications and certifications, such as Google Advertising Professional, can help. Some firms specialize in certain market segments, which could benefit you.
9. Can you provide references and successful rankings?
Testimonials from clients are a great way to find out about your potential vendor. Much like when selecting a doctor, plumber or gardener, word of mouth is powerful. Their list of successful rankings should have traffic for relatively common terms. A low search count per keyword doesn't necessarily mean poor traffic, especially if the firm focuses on the long tail strategy.
10. How much will the traffic results cost and when can I expect to see them?
Price alone can't determine quality SEO work. You may see packages for $200 to $300 per month and some that are several thousands of dollars and higher. But you often get what you pay for. Traffic can be generated quickly depending on your niche keyword choices, saturation in the marketplace and competition. Make sure they aren't talking about pay per click.
Now that you know what questions to ask a potential SEO firm, here's a question you should ask yourself:
Will I be a good partner?
As a client, you have responsibilities as well. If you ask for everything up front, are overly cheap, can never make a decision and don't sign contracts on time, you're not being a good partner. If you put a lot of pressure on your SEO vendor for a first page ranking of all your keywords in a short period of time, you may have false expectations.
Experienced firms will educate you about the process and will get you top positions; it just takes time. As the sponsor, you should be ready to commit some of your own time, support the project and help push the recommended changes. This can be done by building a detailed discovery, analysis and SEO strategy document on day one.
Hiring a firm has its advantages, including diverse experience, a network of resources, quicker rankings and time savings. On the other hand, if you keep SEO in house, you can retain control, learn faster and save money. It's a matter of evaluating whether you have the time and knowledge.
When hiring an SEO, if you can afford to, recruit someone in house who can gain knowledge from the outside contractor. Nine times out of ten you will want control of your own business and SEO listings. If you hire an in house Search Manager, and give him access to the contractor, you have more chance of reaching and maintaining your search listings in the long term. Also, you will have somebody working full time on your rankings and driving the contractor for more links, articles and reports. All of which will help you reach your goal faster.