The text that is used in the links that point to your website has a major effect on the position of your website in Google's search results.
Let's take look over it e.g if people around the world use the text (which we call anchor text)
"Buy cheap computers online" to link to your website or a webpage of your site than there is the possibility that the linked webpage will get higher rankings for the particular keyphrase"Buy cheap computers online" in Google search results or any other search engine.
The link text (also called anchor text) is the text that is used in text links. Example:
< href="http://www.abc.com/">Anchor Text
Here am really sorry to say that, not all anchor texts will be used by Google. Check the following things to make sure that the links to your website pass the correct anchor text:
1. The nofollow attribute
Links to your website or any other page of your site that use the rel="nofollow" attribute don't pass the link text to Google. Example:
< href="http://www.abc.com/" rel="nofollow">Your Keyword
2. Invalid characters in the URL
If an URL contains invalid extra characters then probability is that search engines won't be able to index the link correctly. Example:
< href="http://www.abc.com/"> Your Keyword
In this example, there's a space at the end of the URL. Some webmasters found out that anchor text is not passed to Google if the link contains an extra space character.
3. The links use 301 redirects
Google's Matt Cutts recently confirmed that Google won't consider all anchor texts that are used in 301 redirected links. Example:
< href="http://www.abc.com/page.htm"> Your Keyword
The web server redirects "http://www.abc.com/page.htm" to "http://www.abc.com" with a 301 redirect. In that case, it's likely that Google won't use the link text.
4. The first link passes the link text
If a page links double to the same page then Google will use the initial or we can say the first link text and discard the other link texts. Example:
< href="http://www.abc.com/">This is an example. The link text < href="http://www.abc.com/">your keyword will be ignored by Google.
The first and the second link go to the same URL. In this example, Google will use the link text of the first link, which is "This". The link text of the second link will be ignored by Google.
If the second link points to another page of the linked website, then both link texts will be used by Google:
< href="http://www.abc.com/page1.htm">This is an example. The link text < href="http://www.abc.com/page2.htm">great keyword will be ignored by Google.