I'm having a problem that I suspect many marketers share. Quite simply … SEO or just buy the traffic. I noticed that you switched to SEO because you like the passive income component. But when I consider ALL the work and ongoing moving parts to SEO .. visions of the hamster on a treadmill appear in place of couch potato cash. Have you noticed that there is always something new to do … now it's Google+ ect. and "more to do" is surly on it's way. It's reached the point where it's mind numbing.
Clients often ask me the difference and I give them a simple answer that normally puts an end to the conversation and their questions, much like the answer shane thomas gave, but less detailed.  Direct is people putting in your url in the top and organic is people searching for you.  Here is an example: If I want to buy a book i type in amazon.com (direct traffic) but if i forgot where to buy a book online i search for "where to buy a book online" which directs me to amazon.com (organic traffic).  When i explain it like this, a light bulb goes off and they understand.  Hope that helps.
An organic content marketing system is customer-centric, focusing on giving your customers an improved online experience. You aren’t paying for your place. So, you need valuable content that provides answers to questions, and highlights why you have the best solution. If you establish yourself as a good source of essential content, you build an engagement with customers. And, in turn, you build your brand. But this type of marketing requires time and effort, and a good system is essential to reap rewards.

You know who and where your best customers are — Bing Ads lets you choose when and how to reach them. Control where your ads appear by city, state, country and worldwide. Fine-tune your targeting even further by setting the time of day to display your ads and on which devices. By targeting only your most relevant customers, you can reduce unnecessary spending.
If you were to ask someone what the difference is between direct and organic website traffic, they would probably be able to warrant a good guess, purely based on the terms’ wording. They might tell you that direct traffic comes from going straight into a website by entering its URL into a browser or clicking a bookmark, while organic traffic comes from finding the site somewhere else, like through a search engine.

At our agency, we work with sites of varying sizes, from very large to quite small, and recently, we have noticed a trend at the enterprise level. These sites aren’t relying as much on Google for traffic any more. Not only are they not relying on Google traffic, but also, the sites are getting less than 10 percent (or slightly more) of their organic traffic from the search giant.

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