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What Is Search Engine Optimization?
Search Engine Optimization (SEO) is optimizing your website to rank high, for a set of targeted keywords, in the organic search results (represented by the grey lines below) of search engines like Google and Yahoo. By ranking higher, you get increased exposure and also "perceived" to be more trustworthy, thus, inreasing your bottomline.

How Does Search Engine Optimization Work?
Basically, Search Engine Optimization attempts to increase your website's relevance for certain keywords and general trustworthiness. The process starts with a keyword analysis to determine which keywords to target, followed by modifications to your website to emphasize those keywords and natural link-building to increase your website's trust-factor. Of course, this is a very simplified explanation, and there are many more steps, techniques and also things to avoid, to
make it work.
Is Search Engine Optimization Risky?
Yes. Inexperienced use of hidden text, sneaky redirects, linkfarms, etc. can raise a flag and cause your website to be de-listed from the search results or even permanently banned. You should also look out for SEO Consultants who offer ranking guarantees, but go on to optimize your website for "junk" keywords, i.e. keywords that nobody ever searches for - you'd still get #1 rankings but virtually zero traffic.
(Tip: use Google's Keyword Tool to check the search volume of the proposed targeted keywords)
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