advice about servo encoder

I have seen encoders that you mount to the shaft of the servo to provide that position feedback.
example:

One could also modify the servo to read that position directly - here's a link showing how to do that with an arduino to monitor the position.
http://forums.trossenrobotics.com/tutorials/how-to-diy-128/get-position-feedback-from-a-standard-hobby-servo-3279/