SEO stands for "Search Engine Optimization", sometimes known as "Search Engine Optimizer". If I were to compare it to something, it may be to car production and how some smaller companies produce the parts shipped to a main company for assembling. The same theory can be applied here. SEO provides ways for a website to be more findable, and gets paid for their part in the larger picture.
Though, I suppose a SEO isn't always needed. In fact, it seems to me that the SEO's job can be broken into sections and distributed to the web design team in a way that causes only an ounce more of effort rather than a wadful of cash. You see, the SEO's job is to create findability in a website. And to create findability the team already has to place a hand into the production.
That's why one does not necessarily need to pay a SEO. Instead, just a few extra steps from the team can eliminate the use of a SEO altogether and still make the website more findable.
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