I agree with stressfree, those type of low-end clients will take tons of handholding and expect the world in return. I have been fortunate so far in the last 5-6 years where i don't have to solicit business but i can understand how someone new getting into providing seo services may jump on the smaller areas just to build a portfolio.
Also trolling CL seems to be an area for people looking to get seo work but keep in mind that type of client as well has low budget and will take allot of "seo concept" done on them since they probably get in 500 replies for seo services from all over the place.
If you have a portfolio and can provide proof on what you have obtained for clients , start with that and don't devalue yourself, large clients see no value in cheap pricing...that's what i have come to in the last 10 years.
I wouldn't at this point even take 1000.00 a month as a contract, but for some, those are great ones to land and they will feel good to close on the sale. I have found that you really need to get into networking in your area (closest large city) and see what design firms, ad agencies, interactive agencies, marketing associations, retail associations...etc are doing
About 6 years ago what i did was run a morning breakfast seminar, went from 9am till noon and I provided breakfast. I went around to small business and agencies that had clients and said I was doing a seminar on search engine marketing and optimization and it was free and a light breakfast was offered. I booked a small conference room in a hotel near by and started networking to get people to show up. The whole thing, if i remember correctly cost me 3-4k.
As the people showed up ( i had been making this a work in progress for 4-5 months) to assure myself people would attend, I took everyone's business card and at the end of it a raffled of a couple of cell phones by pulling their cards out of a hat. What that gave me was a list I could generate as an "seo mailing list for prospective clients"
I put on a presentation, had documentation they could take with them and managed to obtain over 40 cards to follow up with. That 3-4k investment returned me over 60k in business.
Point being, like any business you have to spend money to make money. If you're low on budget get involved with as many panels you can get on to start speaking. Target one vertical as an example and go after that client base for example real estate agents, there always up for a free meal
For larger seo clients, they base issues on project management and development, the rule of law being:
Scope + Time + Cost = Project Launch
The three main areas I would say to focus on would be:
1. Sell the client the concept in a presentation or meetings, don't sell them the solution that's what they will pay you for.
2. Speak as an authority. If you are meeting with a client who is the "skin cream" business do your homework, know what competitors are ranking where , express terms you have researched that get clicks and finally find out as much info you can on the prospective client.
3. Under promise and over deliver. Your biggest client base will always be your existing client base if you know how to up sell properly.
The clients you want to avoid are clients that respond to these questions with these answers:
Question to Client: What is your timeframe for this project to achieve the rankings you want to see ?
Answer: As soon as possible
Question: What budget did you have in mind ?
Answer: As little as possible
Those two statements will tell you allot out the client. Chances are this type of client has no idea or is just looking for someone to tell them exactly what they want to hear.
This industry already is loaded with snake oil salesman that will jump on it and end up destroying the value of SEO to a client like that, thus, giving the importance of SEO a bad name. To be successful you have got to deliver over and over. Dont tell them what they want to hear or try and sell the magic 199.00 solution ( it doesnt work and never has), deliver them what they need to have and the retention sales will keep coming and word of mouth goes real far..
2 cents