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I have been following this subject for sometime now, although I haven’t come to a definite conclusion yet, I do have some educated thoughts on the subject.
In the past SEO has worked because of the lack of sophistication in gathering information. That is why a constant pounding of a auto surf, link farms, and metatags played a large part in getting a site indexed near the top of searches, We have in the past also achieved great results with some good anchor text, and one way back links or inbound links. It was not hard at all to produce web spam in this manner. Web spam is an undeserving site that has been manipulated to be indexed on the top of searches. I have had a few.
Now with the new sophistication that the spiders have they are getting more specific when cataloging information, breaking content down, looking for real Traffic and buys from a site. With this information indexing websites will be basically given to the more powerful sites that are already making money and the rest will be left behind.
So instead of trying to compete with getting in the top ten, I believe that I read a must do from Shoemoney, and possibly Greg Howlett. That the real long term SEO strategy is in branding so that you can get your first place front page position, you need to make Google, Yahoo and the rest of them want you on the front page. Branding is the best way for most to get noticed, and actually always has.
The big money makers have been doing this for years. Some of them were nobody until they made calms to be making huge money. What happened was they branded themselves as being huge money makers and gained huge followings as a result. The illusion created the reality. The point is branding is the most powerful tool you have.
Brad West ~ onomoney
Founder ~ TIMG