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If I had a small business come to me I would probably do it at half the cost. For me SEO is not about the money, it's in my blood and I love it.
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You are a lucky man
i deal with the smaller companys and go only just under half, after all most of my client are from my area of the country and norfolk isnt flooded with money like london etc. It gets me a good income even though i only do it part time.