Anchor Texts
Anchor Texts are important for both on and off-page optimization. For on-page optimization it is recommended that you build a good site navigational structure that makes it not only easy for humans to navigate your pages, but search engine spiders as well.
Broken Anchor Texts can lower your search engine rankings so ensure you have no broken links on your website.
Make sure the links on your page are related to the content or theme of the page and website.
Good SEO practice when adding links on your page is to ensure that you use the keywords you are targeting for that page in the Anchor Text as well as in the title attribute. Even more important is if you make the anchor text/title match the title/h1 tag of the page the link is pointing to.
This example link would tell the search engine spiders that the page it is about to follow is about blue widgets in California!Anchor Texts are also very important in off-page optimization. When creating backlinks through directories or article submissions make sure the link back to your site contains the keywords you are targeting, the above example is a good starting point for off-page link optimization.