Internal keyword linking - short or long string
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I've seen a couple of people leave comments about keyword linking being too specific.
If I"m doing a lot of internal keyword linking and I want to rank well for 'widgets', is it better that most of the links just use the word 'widgets' or should some of the links have more words in them.
ie: 'red and blue widgets' - 'buy these widgets online' etc.
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There's no direct evidence that over-doing your internal commercial linking (i.e. linking with your primary keyword internally in a site) causes problems, but it certainly doesn't look professional to continually link to your car insurance page with the anchor text "car insurance". There has been some speculation that internal linking like this can cause issues, but I haven't seen it tested or proven yet in the way that having too many inbound links like this has been tested / confirmed.
I would certainly not overdo this sort of linking despite there being no solid evidence that I am aware of, partially because of the unprofessional vibe it gives a page (related to everything David has mentioned above) and partially because I am sure it sends sub-optimal signals to Google regardless of whether it is considered a ranking factor.
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I dont think having a whole site full of exact match links will benefit anyone. Users, your site, or your rankings. Here is why:
A user is browsing your site. they come to the word "widgets" in a sentence that is linked. They keep reading. They come to the word "widgets" in a sentence that is linked. They keep reading. They come to the word "widgets" in a sentence that is linked. They keep reading. They come to the word "widgets" in a sentence that is linked. They keep reading. They come to the word "widgets" in a sentence that is linked. They keep reading. They come to the word "widgets" in a sentence that is linked. They leave, because the site doesn't offer them anything in terms of excitement, information, or value.
In reality, you would be lucky to have a user read that long. As you read that above, it becomes apparent how proper anchor text can benefit your users. Lets look at another example:
A user is browsing your site. They come to the word "widgets" in a sentence that is linked. They keep reading. The next sentence speaks about the benefits of using said widget, and links using the text "how widget works". They keep reading. The next sentence compares your widget to another, similar widget offered by a competitor, using a infographic. The infographic has a buttom that says "view the full comparison". They start clicking, and reading your subpages. They find useful info, that answers the question of why they came there in the first place. Better yet, because your site rocks, they share it with a friend.
I could go on, but I think you get the idea. I know you want to rank for your keyword, but don't focus strickly on that. Here is an article I found useful, (ironically its from the MOZ blog) but it gives a different perspective on site design and optimizing around a users experience. http://moz.com/blog/most-entertaining-guide-to-landing-page-optimization
On top of all that, I'm betting Google wants to see your links used in the proper way, meaning creatively. You can include your widget keyword in your links, but don't use it the same way every time.
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I would vary them when possible. Most can be for the exact keyword but I think some variation is better as well, maybe even a few "here" links, actual links put as anchor text, etc.
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