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Actually, you are right. It depends on the competition. If your sites sells or promotes extra-narrow niche products - read "SEO for dummies" and do it yourself. If you want to sell mobile phones - forget about SEO' go for PPC. Only if it's something somewhat popular you can hire professional.
It depends on the domain. It could be an org domain which always gets preference. One link from Adobe.com might be worth 1000 so-so links.
Every case should be analyzed professionaly.