I definitely prefer SEO to paid methods. I do a little PPC towards my sites, but not much, and it's not a main source of traffic for me.
I've had some luck writing articles and posting them on article distribution sites. I wouldn't say I get an extreme number of links, but definitely enough to make it worthwhile. I do regularly have to contact webmasters and remind them that a live link to my site is required for use of the article, so it is necessary to pay attention. I just use Google Alerts to tell me when it finds one, then I can check for a live link.
Submitting your site to directories can do some good as well. You want to be sure that the directory gives direct links to your site, and I generally skip the ones that require a reciprocal link - although if it's a particularly good and relevant directory I'll consider providing a link.
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