SEO as real estate — extending the metaphor

I was talking to a colleague about how SEO vs. PPC is like buy vs. rent and they found it a very apt metaphor. So, let's extend it a bit more.

Not only is search engine marketing (SEO) similar to buying in that you gain equity over time, but also in that you are "owning" a part of the Web real estate. Let me explain.

When you invest in an SEO strategy, you are laying a foundation on the Web. Your web presence (website/blog) gains value over time as you increase your rankings in the search engine's organic listings and build referral links with other sites. This takes time and effort. So when you earn a top rank for a key term, you are gaining the value of increased visibility (corner-lot), awareness (prime neighborhood). In other words, appreciation!

Now, it's not a guarantee that appreciation will continue indefinitely (or that it will even start). Maybe someone loud will move in next door (key-phrase competition), or someone constructs something ugly next door (saturated market place), or even a natural disaster (search engines change algorithm). As you can see, neither real estate or SEO is a done deal. There are many risks involved, which is why it is considered an investment.

PPC, on the otherhand, has little to no risk. It's that sexy apartment in a prime location -- from which you never gain any direct financial benefit. Sure, you have some parties (traffic) and maybe get lucky (conversion), but you aren't "building" anything for the future (long-term commitment).

Wait a minute...maybe there is a connection between SEO/PPC and relationships we should consider?

For next week.