How to Utilize Inbound Links ?

When considering how offpage characteristics effect your sites ability to rank well for given keyword terms It cannot be stressed enough that “Page rank is Page to Page, (NOT SITE TO SITE) and independent of URL designation”.
What this means is that once your site enters into the PR system that is it is indexed by Google by virtue of backlinks from and external source domain, then a link from an internal page with “R” amount of PR contributes exactly the same PR weight as a page from a different URL with “R” amount of PR weight to distribute (all other factors being equal).
How to get link popularity started?
In order for pagerank to be calculated by Google’s algorithm for any page on your site that page must first have been found by the Google spider (robot) through a backlink.
Now a backline is a link from one unique URL designation to another – alternatively: a link from one page to another.
Once you have recieved a backlink from a page that has been indexed by the Google spider you are eligible to compete for PR.There are 2 ways you can benefit from backlinks:
First you get a certain amount of PR weight points as dictated by the google PR calculation algorithm (see article on the Google pagerank )
Second, and some argue more importantly, you also get an added ranking boost for whatever keywords are contained within the anchor text and this precisely describes why sites almost always rank #1 for their domain name.
It is a common misconception that there is special weight given to domain names when in fact the reason a site generally ranks well for its domain name is because all of the links pointing to that domain place your domain name in the anchor text.This is a great opportunity to utilize this little know anchor text boost to place well for your chosen keywords. The way to take advantage of this added boost is to request that your keywords are placed in your backlink anchor instead of your domain name.
In short, backlinks are a great asset if utilized correctly and remember that the same principals apply to internal links as apply to the links you recieve from other domains and other webmasters. If your index page is optimized for any specific keyword like SEO then make sure that most of your internal pages that link back to the homepage use SEO as the anchor text DO NOT USE “home” for a link back to your index page or you waste the most controllable opportunity to boost your own keyword search engine positions.