As the Internet grows into it’s teenage years, much as with real children, we see it starting to comprehend economic logic. Making money costs money. The majority of successful businesses around the world are built on the foundation of ROI (return on investment) not ROTSBFC (return on time spent building free customers).
Don’t get me wrong, the days of home based pocket change startups aren’t going anywhere anytime soon. But unfortunately the percentage of those ventures that succeed is rapidly shrinking due to business people with investment capital entering the market online.
David Naylor made a post about a client who was penalized in Google and had decided to cut his losses and concentrate on PPC including Yahoo and MSN as PPC sources.
Most of the comments on Naylor’s blog and people I have discussed this post with seem to be of the opinion that the client should bow down and ask for forgiveness. Organic Google traffic is needed too much to survive without it. I completely disagree. Not knowing the specifics, this sounds like a business person with a real business model that understands the principal of ROI. He does not expect a return without there first being an investment. He does not “need” SEO. Neither does any business that understands and is built on true business principals.
If your business is built upon the principal of a transaction costs me X to acquire and said transaction is worth Z in the bank, then SEO is nothing more than gravy. SEO is one of the most profitable bowls of gravy anyone will ever encounter. Any business that does not recognize this is blind. If nothing else the organic profits can be used to prop up the advertising budget of the business.
Calacanis is wrong. SEO is not B.S., but it is unnecessary. Unnecessary , but VERY profitable!
P.S. I am not stalking David Naylor even if the my recent posts seem to indicate otherwise. Maybe you other bloggers out there need to post something interesting enough to actually take note of.