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I'd agree that SEO is not the best "do-it-yourself" idea unless you are willing to spend some time wading through tutorials and books - but its better than paying $40k, which seems outrageous to me.
There some market who it is very hard to get some results (electronic, luxury items, pharma, hosting, etc) but some others, like this market, it is a piece of cake !
At one point, there are customers that want to negotiate for "low, low" prices and "I've got a small budget, but i want top rankings for these keywords" type of customers. On the other hand, there are genuine companies that end up spending their thousands of dollars on SEO companies that don't even have good search engines rankings themselves.
Regards,
Fione