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What are your thoughts on this latest trend and how do you position your SEO services in the midst of pay-per-click services. I say catch the wave and make it part of your overall program and hope for the best. But, it is tougher to get justify one's fee when they pay them too!
Some customers will want regular rankings so they don't have to keep paying per click. I don't think it's been firmly established whether an equally good regular listing or an Adwords listing will get more click-throughs, but the regular still has an appeal for customers, even though they may have to do both.
That's where stressing "benefits" comes into play with selling services.
The general consensus, though, is that the wisest route to take is to diversify efforts.