Sydney, Melbourne, and the long tail: Australia's agency tiers
Tier one is a short list of national brands with 50+ staff, enterprise clients and enterprise pricing. Tier two, the bulk of the market, is 5-30 person shops across Sydney, Melbourne, Brisbane and increasingly the Gold Coast, where the founder sells and a delivery team executes. Tier three is the churn layer: white-label resellers and offshore operations with an Australian phone number.
Distance matters less than it used to. A Perth mining-services firm can be well served from Melbourne, or from London, because Australian SEO is almost entirely Google SEO: at ~94% market share (Statcounter), there is no Bing hedge worth funding.
Where the money leaks
The tier-two model bills senior rates and staffs junior hours. It is not fraud, it is just the economics of agency margins, but you should price it consciously rather than discover it in month five when rankings have not moved.