Most real estate agents treat Google Local Services Ads and SEO like competing strategies.
Wrong approach.
LSAs and SEO work better together. LSAs capture “realtor near me” searches immediately. SEO captures research queries LSAs can’t touch and builds long-term assets that reduce your LSA dependency.
I’ve been doing SEO for 15+ years. The highest-producing agents run LSAs for immediate leads while building SEO that eventually dominates their lead generation.
This is the tactical framework for combining both channels – when to use each, budget allocation, and the transition from paid-dependent to organic-dominant.
📊 Key Takeaways
- Different Search Intent – LSAs capture “realtor near me” (ready now). SEO captures “living in [neighborhood]” (6-12 months out). Both needed for complete market coverage
- Lead Cost Varies 10x – Small markets: $15-40/lead. Competitive markets: $80-200/lead. Track cost per closed deal, not cost per lead
- Budget Evolution – Year 1: 35-40% LSAs, 60-65% SEO. Year 2: 25-30% LSAs, 70-75% SEO. Year 3+: 15-20% LSAs, 80-85% SEO as organic matures
- Conversion Quality Difference – LSA leads: 3-8% conversion. Organic leads: 8-15% conversion. Higher quality comes from research time
- LSAs Build Zero Equity – Stop paying, leads stop. SEO builds assets generating leads years after publication
LSAs vs SEO: Quick Comparison
Google Local Services Ads:
– Pay $15-200 per lead
– Top search placement
– Geographic targeting only
– Immediate results
– Zero long-term value
Organic SEO (tiered approach):
– DIY: $0 but requires your time investment
– Budget agencies: $2K-5K/month (basic content only)
– Comprehensive strategy: $6K-12K+/month (professional content, technical optimization, strategic backlinks)
– Timeline: 6-12 months to meaningful results regardless of tier
– Long-term value: Builds compounding assets
The comprehensive approach I outline in my real estate SEO guide, neighborhood strategy, and luxury marketing guide requires a higher investment but builds assets that generate leads for years.
Note on video: My SEO packages optimize and rank videos you produce (titles, descriptions, YouTube strategy, schema, embedding) – but video production/filming is handled by your videographer. See my video SEO guide for the optimization framework.
When to Use LSAs vs SEO
Use LSAs when:
– You need leads this month
– Lead costs are under $100 in your market
– You convert at 5%+
– You respond within 5 minutes consistently
Skip LSAs when:
– Leads cost $150-200+ (ROI breaks down)
– You can’t answer calls immediately
– You convert under 3%
– You already rank organically for “realtor [city]”
Always invest in SEO when:
– You have 12+ month timeline
– You want to build an asset vs rent leads
– You’re targeting research-phase buyers
– You want 8-15% conversion vs 3-8%
The Three-Year Strategic Plan
Year One: LSA-Heavy Foundation Building
Total budget: $8,500-13,000/month
Budget split: 35-40% LSAs ($3,000-5,000/month), 60-65% SEO ($6,000-8,000/month)
LSA strategy: Run LSAs for immediate cash flow. Test geographic targeting, track conversion rates, optimize response time.
SEO priorities (comprehensive approach):
1. Publish 15-20 comprehensive neighborhood guides (professional content, not thin articles)
2. Optimize Google Business Profile completely
3. Set up proper analytics and call tracking
4. Build 20-30 strategic backlinks from relevant sources
Expected results: LSAs generate 15-25 leads monthly. SEO generates 0-2 leads monthly. That’s expected – you’re building assets that compound over time.
Note: Budget agencies charging $2K-5K/month won’t deliver this level of depth. The comprehensive strategy I outline in my neighborhood SEO guide requires significant investment but builds real authority.
Year Two: Balanced Transition
Total budget: $8,500-14,000/month
Budget split: 25-30% LSAs ($2,500-4,000/month), 70-75% SEO ($6,000-10,000/month)
LSA strategy: Reduce LSA budget 20-30%. Focus on seller-intent keywords only. Pause low-converting time slots and geographic areas.
SEO priorities:
1. Publish 20+ additional neighborhood guides
2. Create comparison content
3. Build 30-50 premium backlinks
4. Add video content for key neighborhoods
Expected results: LSAs generate 12-18 leads monthly. SEO generates 5-10 leads monthly (growing 30% monthly). Total lead volume stays stable while blended cost per lead decreases.
For backlink tactics, see my backlink building guide.
Year Three+: Organic Dominance
Total budget: $7,500-12,500/month
Budget split: 15-20% LSAs ($1,500-2,500/month), 80-85% SEO ($6,000-10,000/month)
LSA strategy: Run LSAs strategically only – “sell my house [zip]” in target neighborhoods. Pause generic “realtor near me” since you rank organically.
SEO priorities:
1. Maintain publishing (2-4 articles monthly)
2. Refresh top content annually
3. Build premium backlinks from industry publications
4. Expand to adjacent markets
Expected results: SEO generates 30-50 leads monthly. LSAs supplement with 5-10 high-intent seller leads. Organic is now primary lead source.
For video optimization, see my video SEO guide.
Budget Allocation Framework
Calculate your LSA economics:
LSA cost per lead ÷ Conversion rate = Cost per deal
Example: $100 per lead, 5% conversion = $2,000 per closed deal. On $15K commission, that’s 13% CAC – acceptable.
If cost per deal exceeds 30% of commission, shift budget to SEO.
Track blended performance:
– LSA leads and cost
– Organic leads and investment
– Conversion rate by source
– Cost per closed deal by source
For complete analytics setup, see my analytics guide.
Decision matrix:
– Need leads now, cash-flow tight: 70% LSAs, 30% SEO
– Profitable, building: 50% LSAs, 50% SEO
– Established, 6-12 month runway: 30% LSAs, 70% SEO
– $10M+ volume, patient: 20% LSAs, 80% SEO
– Already ranking well: 10% LSAs (strategic), 90% SEO
LSA Optimization Essentials
Geographic Targeting
Default LSA radius is 25-50 miles. Tighten to 10-15 miles around your target market. Don’t pay for leads in areas you don’t serve.
Dispute Invalid Leads
Dispute within 30 days:
– Spam/robocalls
– Wrong service category
– Outside service area
– Duplicates
– No contact info
Google refunds 30-60% of disputed leads. This saves $500-2,000 monthly in competitive markets.
Response Speed
Respond within 5 minutes or lose the lead. LSA buyers contact 5+ agents – first responder wins.
Create message templates for instant responses. Set up call forwarding to mobile.
Common Mistakes to Avoid
Choosing One Over the Other
“LSAs only” = $50K-150K annually with zero equity built. “SEO only” = 12-18 months with no leads while building.
Run both. LSAs fund your business while SEO builds assets.
Not Tracking Source-Level ROI
LSA leads and organic leads convert at different rates and costs. Track separately in your CRM.
You can’t optimize what you don’t measure.
Running LSAs Without Conversion Systems
Paying $3,000/month for LSAs but not answering calls or responding to messages = flushing money.
Fix conversion before scaling LSAs:
– Auto-responder for messages
– Call forwarding to mobile
– Follow-up cadence (6+ touches first week)
– CRM tracking
Pausing LSAs Too Early
500 monthly organic visits ≠ 25 leads. You need 1,000-2,000 monthly visitors to replace LSA lead volume.
Reduce LSAs gradually: 40% → 30% → 20% → 10% over 18-24 months.
Ignoring Google Business Profile
Your GBP affects LSA rankings AND local pack rankings. Poor GBP = pay more for LSAs AND rank lower organically.
Complete profile, get 50+ reviews, post weekly. For complete GBP strategy, see my GBP optimization guide.
Why the Combined Strategy Works
LSAs = renting attention. You pay $50-150 every time someone contacts you. Stop paying, leads stop. Year five looks like year one – still paying per lead.
SEO = buying an asset. Comprehensive SEO (the level I outline in my guides) requires $75K-150K investment over 18-24 months – professional content, strategic backlinks, technical optimization. By year three, that asset generates 50-80 leads monthly. Cost per lead drops to $40-60. Year five, same content still generates leads – blended cost drops to $20-30 per lead.
Budget tier matters: DIY or budget agencies ($2K-5K/month) take just as long (6-12 months) but produce lower-quality results. Comprehensive strategy costs more upfront but builds real authority that dominates search for years.
The path from agent to business owner:
Year 1: Rent attention (LSAs) while building asset (SEO). LSAs generate $200K-400K in commissions while SEO compounds.
Year 2: Reduce LSA dependency 25-35% as organic grows. Total leads stay stable or increase.
Year 3+: Organic dominates. SEO generates majority of leads at fraction of LSA cost. LSAs supplement strategically only.
Year 5: You own your market. Ranking for 300+ keywords, generating 100+ organic leads monthly. LSA spend is $500-1,000/month for strategic seller searches only.
This is how agents get to $30M-50M+ volume. Not by paying Zillow or Google forever – by building organic dominance and using LSAs strategically during transition.
If you’re doing $10M+ in volume and want help building this combined strategy, contact me. I work with agents who understand the ROI of building organic assets while running LSAs during transition. See my complete real estate SEO guide for organic framework.
The execution framework:
1. Run LSAs for immediate leads while building SEO foundation (Year 1)
2. Scale SEO content, reduce LSA spend as organic grows (Year 2)
3. Transition to organic-dominant with strategic LSA use (Year 3+)
4. Own your market organically, LSAs for high-value seller searches only (Year 5+)
Stop choosing between LSAs and SEO. Run both strategically and transition from renting to owning.
About the Author: Jeff Lenney has 15+ years of enterprise SEO experience and has worked with real estate agents transitioning from LSA-dependent to organic-dominant. He specializes in consulting for agents doing $10M+ in volume who want to build long-term assets. Based in Anaheim Hills, CA. Contact Jeff for LSA + SEO strategy.
Frequently Asked Questions
Should I use Google Local Services Ads or SEO?
Both. Allocate based on timeline and cash flow.
Need leads immediately? 60% LSAs, 40% SEO. Have 12-18 month runway? 30% LSAs, 70% SEO.
Goal: transition from LSA-dependent (Year 1) to organic-dominant (Year 3+).
How much do Google Local Services Ads cost for real estate?
$15-200 per lead depending on market.
Small markets: $15-40/lead. Mid-size: $50-100/lead. Major metros: $80-200/lead.
Track cost per closed deal vs commission earned, not just cost per lead.
Do LSA leads convert better than organic leads?
No. LSA leads convert at 3-8% vs organic at 8-15%.
LSA leads are price shopping and calling 5+ agents. Organic leads researched you specifically and are pre-qualified.
However, LSA volume is higher and more predictable.
How long does SEO take vs LSAs?
LSAs: 1-2 weeks. SEO: 6-18 months for meaningful leads.
This is why combined strategy works – LSAs generate immediate cash flow while SEO builds long-term asset.
Can I pause LSAs once SEO works?
Yes, but reduce gradually over 18-24 months.
Don’t go from $3,000/month to $0 overnight. Reduce 20-30% every 6 months.
Even at organic dominance, keep $500-1,000/month for strategic seller searches.
What’s a good combined budget for LSAs and SEO?
It depends on your market, volume, and what level of SEO you’re investing in.
LSA costs (fairly consistent):
– Starting point: $2,000/month ad spend + $500 management fee = $2,500/month
– Scaled: $3,500/month ad spend + $1,000 management = $4,500/month
SEO costs (wide range based on tier):
– Budget agencies: $2,000-4,000/month (basic content, slower results)
– Comprehensive strategy: $6,000-10,000/month (professional content, video optimization, strategic backlinks – what I outline in my guides)
– Maintenance (Year 2+): $4,000-6,000/month
Combined examples:
Year 1 (building): $2,500 LSAs + $6,000 SEO = $8,500/month ($102K annually)
Year 1 (aggressive): $4,500 LSAs + $8,000 SEO = $12,500/month ($150K annually)
Year 3 (mature): $2,500 LSAs + $5,000 SEO = $7,500/month ($90K annually)
ROI perspective: If you’re doing $20M+ volume earning $500K annually, $90K-150K in marketing (18-30% of gross) is aggressive but defensible in growth mode. One $5M listing = $125K commission, covering your entire annual marketing investment.
Budget providers charging $2K-3K/month will take just as long (6-12 months) but deliver lower-quality results. You’re not saving money if the content doesn’t rank or convert.
Should I optimize Google Business Profile if running LSAs?
Absolutely. GBP affects both LSA rankings AND local pack.
More reviews = lower LSA cost per lead. Complete profile 100%, get 50+ reviews, post weekly.
Can I run LSAs to test markets before investing in SEO?
Yes, smart strategy for expansion.
Run LSAs in adjacent cities for 3-6 months, track conversion rates. If leads convert well (8%+), invest in SEO for that market.
Prevents wasted SEO investment in markets where you can’t compete.
