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My site is optimized for keyword "payment gateway" but it seems for each keyword only one page should be optimized as per good SEO.

So if I've a page about Paypal then how should I spread the keywords? Here the main will be Paypal and site keyword will be payment gateway. It means site should have more Paypal than payment gateway. But can payment gateway be in 3rd or 4th position in density?

Similarly how should I create other pages?

How search engines determine the site authority based on keyword? ( let us ignore the external backlinks, context of them and anchor texts).

Adam thanks for reply. I've a dozen sites. But site is the best I've and I'm not cribbing about traffic drop for my other sites during this Penguin update. I did buy cheap links for $10-20 but I did for some other sites too. Later I quit doing all that SEO since I understood that doing such activity is of no use. That was around 10-12 months back. I don't think backlinks are such a serious concern which will entail a penalty here.

I don't do SEO anymore as I don't have time for my dozen sites. Seomoz is not correctly showing on page optimization like keyword optimization. It is showing many errors in crawl diagnostics. But those are from the PHPBB forum and every PHPBB webmaster would get it which is ignorable but Seomoz is highlighting it in Red. At the same time I've another Mybb forum and is also getting similar errors here but it's traffic has been increasing during past two months.

On-page got a D for home page. Overall there is no serious issue I could see here.

There is one silly critical report I see. Page title is: "Choose Your Payment Gateway in 9 Easy Steps" and On-Page Keyword Usage for: payment gateway india

I see that "payment gateway" indeed is there in title and India should be assumed from TLD .in of website - what's the point of calling it a critical factor!

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I'm into the 1 month free trail of pro membership for my niche site http://www.creditcardpaymentgateways.in. The traffic dropped from around 250 to 50 on April, 24th but as of now it has recovered some to 100. This site has original content and not a spammy site.

Out of all the metrics I see in my PRO Dashboard I'm not at all able to figure out the reason of being penalized.

After this penalty I've worked on to reduced the "payment gateway" keyword density from 7-9% to below 5%. Today I notice some rankings upgrade.

Overall Seomoz pro membership is useful for very large sites who have dedicated teams to monitor SEO but for me I'm trying to figure out what to do with all those stats.