The official word from Matt Cutts from Google is that the “typical white hat site does not have to worry …
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The ones that most accurately describe your business, and the contents of your website. Seems reasonable yes?
The reason for this …
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It always a bit of a risk to take on a new client with a historically risky history of SEO. …
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Google looks at many factors when determining where your site is going to rank, but three of the more important …
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Are you going to offer your services to my competitors?
Honestly? Usually, no, but in some rare cases we will take on two clients in the one industry. It's not possible for us to represent more than a couple of businesses in one field because of our guarantee – there just isn't enough room at the page one of Google for us to take on more than 2 clients for a given search term. Most often we will take on only one client per term.
Why are we pointing this out?
Some less scrupulous SEO companies who make no guarantees, take on EVERY business they can for the same phrase! They make no guarantee, as they have no chance of ensuring top 10 rankings on Google for all their clients! If any of their clients ever make it to the first page of Google, well…. it's just pot luck which one it was.
So! The maximum number of clients we take on for the same phrase, is two, usually only one, and then we are DONE.