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They say home page is not a suitable page to drive the pay per click traffic to it and you waste money if you do that. It means a page that is optimized for search engines can not generate sales.
I don't agree with this idea because if optimization disables the home page to sell the products to the visitors, so the traffic it receives from search engines, will be useless. So why should we optimize it?
What do you think?
I would add that this usually applies to affiliates. Vendors' websites are usually focused on selling the product even on the home page.
For example, if you sell widgets, your home page will probably describe the overall benefits of using your particular widgets, but you will have individual landing pages focusing on blue widgets, red widgets, big widgets, small widgets, etc.
So you would generally fo SEO on the home page for widgets in general, whereas you would do SEO on each landing pages for that particular flavor of widget.
With PPC, you have the added advantage of being able to choose the best page on your site for that particular "search phrase". If the searcher types in a very specific description of a product, then send them right to that product page and save them from having to find it on your site. If someone types in a general phrase describing your products or services, then the home page is probably the best landing page for that person.
The fact is, there's no golden rule here -- each site will have to find its own way. I know its cliche, but tracking your results very carefully will reveal which landing pages work best for you.