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Can solos really compete with big SEO budgets?

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At a conference yesterday, a bankruptcy lawyer sat down next to me and wanted to talk about SEO. Now, bankruptcy is highly competitive when it comes to online marketing, because it's an area where online marketing definitely works for lead generation. There are several firms in my area spending thousands (if not tens of thousands) on marketing every month.

It seems to me that a solo bankruptcy lawyer with an ad budget in the hundreds of dollars (optimistically) doesn't have a prayer of competing for search results in this market, and would be far better off leaving the search results to the big spenders and focusing on other ways to get referrals.

Agree? Disagree? Why?

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