SEO Is Dead

I got this email :

Hey Smoke,

I've received emails from several well known IMers stating SEO
is dead. This was probably prompted by the recent announcement
from the Build My Rank network (BMR) that they are closing
down. That in turn is because BMR got de-indexed by Google this
week.

And Google is now targeting the ALN (authority link network)
that has had 25% of its sites de-indexed so far. Rumors are that
LinkVana could be the next target.

This has a lot of people worried, because they have been
depending on these networks for their site rankings. As
I've always said, using private blog networks is a BIG mistake,
exactly because they provide a very easy target for big-G.
But really, this does not mean SEO is dead. It just means
blog networks and other private networks are dead. Big
difference.


So what SHOULD you do?

Does this make sence?

Lets here your thought on it ?