The short and sweet answer is, Yes! In order to produce results from optimizing a website for higher search engine placement it takes a considerable about of work, knowledge and patients. Therefore getting all those things right is a large effort and may give the impression of being costly but in the long run the return from SEO huge.
When investigating SEO's cost you should consider this, look at the income you generating from one sale or a handful of sales (if your product/service is smaller in price), now let's say you get in return one of those sales or a handful of them in one month purely from SEO work done on your site. You will have paid back the cost of SEO in a matter of a month or two.
But also understand most companies see an increase of more than just one or a handful of sales a month. Now compare that to other conventional marketing such as a newspaper ad. In a newspaper ad you'll pay maybe about the same cost to run an ad for only a few months or less, were with SEO that ad is running continuously for the life of your website or until your competitors outrank you which could take a year or more.
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