Inbound links from other websites have several purposes for many search engines. First, by reading the text that the link uses to point to another website, a search engine can figure out what that site ...
http://goarticles.com/article/Link-Building-Is-The-Key-To-Search-Engine-Placement/4333214/
Also remember the http://www.howdoyoustartablog.net/blog/2011/02/your-questions-about-free-blogging-sites/ site for further info and resources
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