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I'd focus on the variety of what entails "SEO" -- it's all over the map.and was wondering the best way to respond back to this
For instance, many SEO firms are located in countries where wages and rates are different.
Many SEO firms outsource using talent in lower-wage countries.
Many SEO firms have a variety of different talent, processes, and expertise.
Obviously the price for your expertise and the price for an outsourced SEO guy in Vietnam will be different.