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Small business <3
Having worked with small business owners.... you are missing one small part of the equation. The less you pay... the more you expect. This is totally true and if you have a large volume of these types of clients, you life will be a living nightmare.
Julian, this is where your client selection requirements and client education come in. You want to have your own set of expectations for the client. If they don't agree with the way you do things - it's better to not work with that client. If they need to understand what you can reasonably do for them - educate them :)
As a small business owner lurking in the SEO community this became obvious within a matter of weeks of looking in to this industry. I may be exaggerating by saying this but i think 80% of the on page stuff can be done by most smbs if they just read, after that they should just try and create content and learn how to get it out there. The most helpful post I've seen sense lately is came through a few day about finding cheap content writers. That was something I was able to use immediately and all ready have 4 students that are interested and submitting articles, if I weren't stuck on my iPad I would do the decent thing and link to the article.
If working with smbs cant work for a firms profit margin I would try and put out content aimed to them at least. We are here digesting the content, trying to do it on our own. Learning to do new things for ourself is what we do, becoming salesman, accountants, web designers, and managers the list goes on.