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One well-known example of the effectiveness of anchor text is "failure" -- just go to Google and type in "failure," and you will get the website of George W. Bush's biography!What's also effective is to use keywords of 3-5 words for your anchor text. You not only reduce the competition by using more keywords, but you also narrow your traffic to just the people who are interested in your website. Business - List of business/finance/loan/mortgage resources Computers - List of computer hardware/software/peripheral resources Internet - List of webhosting/webdesign/internet marketing resources Software - List of software resources Web Design - List of web design/development resources Web Hosting - List of web hosting resources Web Promotion - List of search engine optimization/internet marketing resources Web Resources - List of other web resources Recreation - List of travel/hotel/cruise resources Casino - List of online gambling/poker/blackjack/roulette resources Health - List of online pharmacy/hospital/health resources Shopping - List of online shopping/gift resources Miscellaneous - List of all other resources not stated above Let's face it, using a keyword like "fish" as anchor text to your website probably won't get you the most qualified traffic. After all, "fish" has a lot of meanings -- you can even attract people just wanting learn how to play the card game Fish.Using 3-5 word anchor text keywords will always do better than one or two words. Also, vary the text, like "fish for bass tackle" or "best lake bass fishing lures" -- use your imagination. The more words and the more variations, the better your chances to get your pages picked up in the search engine results pages (SERPs). You really don't want to compete with all of the anchor text for "bass fishing."
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