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I have always thought that highly targeted search engine traffic (ppc and organic) is the best. Why? because if a visitor types in a phrase like "web designer in Houston, Texas" there is a pretty good chance the searcher wants web design work. So, if your web design firm comes up at the top of the list, that's an awesome prospect.
Of course, the best source of traffic is traffic from personal referrals. Either in person (e.g., yo MrWebmaster, check out this cool new site) -- or online, perhaps a recommendation from a site you trust. It's just like in the offline world. Trust is everything. If traffic is coming to you by a referral (someone vouched for you), then you've got a much better shot at converting that traffic into a sale.
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