So wait you should SEO for targeted phrases that convert and have less competition and not general terms that don't and have tons of competition?
I guess it seems pretty obvious to guys like me that only ever have done paid traffic but I bet that's a tip plenty of SEO guys could use. The problem is most (certainly not all) of the people that do SEO do it because they don't want to pay for PPC traffic.
I'm with Mike on this too..
Thing is.. most ( and I say most ) good SEO guys are horrible at PPC/Paid, and most good PPC/Paid guys are horrible at SEO.
Kinda like designers and programmers, most great designers are horrible at coding and vice versa.
I also thought this was obvious as well, but I know lots of guys that cant do paid anymore ( traditionally ) on Google, Yahoo and MSN cause of account banned issues. Doing it on a 3rd tier might work, but I think your gonna get results that are off.