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People often confuse between search engine optimization and search engine marketing. Although they may sound similar, these two online marketing techniques are quite different from each other. They share some common grounds too.

The similarities of Search engine optimization and search engine marketing are many. While Search engine optimization (SEO) requires a sound understanding of how the search engines work, Search engine marketing (SEM) is based on the pillars of online marketing and advertising.

It is only when it comes to how Search engine optimization (SEO) and Search engine marketing (SEM) works that the real differentiation comes to picture. SEO refers to site engine optimization techniques dedicated boost the rankings of your search engines. In other words the ranking of your site in the search engine is purely based on SEO principles.

Search engine marketing (SEM) on the other hand is based on the online marketing campaign which runs through a number of advertising networks. The largest online networks currently in business are Google, Yahoo and MSN. Suppose you place an online ad, which is based on a probable keyword your potential client is likely to search for. If a browser do click on that particular ad, you are liable to pay a fee to the search engine, regardless of the fact that the browser who clicked may or may not lead into offline sales.

Search Engine Optimization SEO is unique because of the fact that the organic results which appear in search engines are a direct result of the search engine optimization techniques which you have employed. These techniques can be further divided into On Page Optimization and Off Page Optimization. On page optimization is associated with website designs while off page optimizations concerns with the flow of inbound links to your Home Business website.

SEO thrives on organic traffic which is mostly free. When the website users search for something online and the search engines will come up with the best possible listing based on a unique algorithm. When a user click on anyone of these listings, he is not expected to pay the search engines.

SEM is different than search engine optimization in one main way. Unlike traditional advertisements where you need to pay whether your potential clients see or do not see your ad, in online advertisements you do not have to pay unless some one clicks on your ad. That is why it is more cost effective to advertise in online media rather than the traditional media. In search engine marketing, the costs of your ads vary depending on your keywords and the location of your ads.

Anyone who is interested in doing online business should be well versed in both SEO and SEM. These are the two disciplines which will make or break your Online Marketing business.

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