Keywords (a waste)! Brand comes first!
Keywords, keywords, keywords ... Establishing an internet presence is said to be about controlling hot keywords.
Coke.com uses a total of 3 keywords, Saddleback Church uses only 2. Can you guess what they are?
Building a great business and letting people know it through traditional methods can drive business to your site and is much more profitable than pay per click. Pay per click is like having a store on Main Street and getting paid for everyone who looks in your storefront. Would you let a city do that?
What if newspapers charge you for everyone who reads your newspaper ad, whether they bought from you or not?
Focus on building your business reputation and customer service, tell everyone you know to visit your website, then provide them with on-site services that are useful, entertaining, interesting, and updated frequently.
Why do you have a website? Internet clients are great but wildly fickle. Not only that most are just surfers. What if you had a business in a mall and the mall charged you for everyone who walked into your store, you would bid against a similar store in the mall to charge you a higher price for each person you pass by your window?
Just as the Las Vegas casinos are the winners and the gamblers are the losers. Search engines are the pay-per-click winners, customers are the losers.
Saddleback Church's popularity is the result of a marketing technique that relies wholly and entirely on building relationships between small groups. The church has 2,600 links on Google, 17,100 on Yahoo (Alta Vista) but these links were not purchased or created on linking sites. They come from real people who have heard of the church and are interested in the product. Coca-Cola has 10,200 links on Google and 18,000 on MSN, do you think they bought those links? Look for Coca-Cola under the keyword soda or carbonated drinks that aren't even in the top 50.
These are companies that have worked to create their business first and then the website.
I don't think you will be surprised. They have built a name in their respective communities and can be found on the internet under that name. No 499 keywords, no pay per click, no cons or pitfalls ... just a good brand name and a great reputation.