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Yeah, but lots of "web guys" promote both design and seo. So you never know what someones "designer" is actually doing for them. But I do understand what your saying.
I couldn't agree with you more.
On the low end of the budget you'll have some folks doing wordpress sites which really do lend themselves towards SEO. If you build a site properly it can go a long way. Out of the gate for less than $500 you can have a basic wordpress site with the SEO laid out correctly and have a good start. There are a number of guys on this site (myself included) that are pretty good at this. John is probably the most available.
On the other hand, there are SEO professionals. I cut a check last week to an SEO professional that is helping me get my site a few levels beyond the next level. That was no small investment, but I believe is a guy that rubs elbows with the guys that do SEO for little companies like Macy's and JCPenny's.
'Only part of that I would disagree with is the conversion. You can have a site at page 1 position 1 and still not convert.A well designed website can be a businesses best asset. On the other hand, I would rather have an ugly looking website on page 1 than a beautiful site on page 100. To me, the SEO is worth 50 times the site design.