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Latitude one of the biggest SEO companies in the UK has reportedly gone into administration, this has come as quite a shock as SEO and digital industries have not suffered too much from the credit crunch and Latitude is in no doubt an Industry leader.
Latitude are based in Warrington, but have made their mark globally as a successful SEO giant, the north west SEO company is only a few miles from SEO Creative and our consultants have worked with them, Big Mouth Media and Just Search; arguably the 3 biggest UK contenders in SEO.
As a new business it is quite worrying that an SEO company of this calibre could find them selves in trouble, especially when knowledge of the web seems to be getting better and business owners are looking to SEO and Internet marketing as a cost effective way to promote business.
However, our business model eliminates the risks larger companies have to take, by working remotely we keep overheads low, using experienced freelancers we don’t need to worry about salaries but outsource the work. By using more than 5 freelancers on every campaign and a strict QA process we ensure any subtle SEO issues are not missed. This is the same with development work it is checked at least twice before going back to the client.
Larger companies may have to pay out a lot at the beginning in salaries, property, legal fees, commissions etc therefore every SEO contract has to come some way to covering that. I can imagine the problem larger companies have is their clients rely on a quick ROI to pay off the rest of the contract. You cannot guarantee results in SEO therefore if the results don’t come quickly enough clients may not have the money to pay. This has a knock on effect to the whole company as wages still need to be paid and overheads. In the time it takes to recoup the funds the companies pay large interest to banks.
Many good companies have trouble from this scenario, I’m not sure of what happened to Latitude as I cannot imagine a lot of their high profile clients would have had trouble paying. It does seem that due to the companies reputation in the Industry they have secured funding from one of their existing share holders; private equity firm Vitruvian Partnersto, this has prevented Latitude from going bust and are even expanding, and from a blog comment on David Naylor’s blog seem to be recruiting again.