Well the most simple and watered-down explanation I can give is this: an Anchor Text Link is a word or string of words that is clickable. That's all. Pretty basic huh. When a word or phrase that is an Anchor Link is clicked on, you will be taken to a new web site or page. An Anchor Link can also be called a Hyper Link because it is text that performs a function (take you to a new page).

The use of an Anchor Text link kills 2 birds with 1 stone!

• Search Engines love it! Anchor Text links hold major weight where Search Engines like Google are concerned! And if you want to rank well on Google you definitely need to have Anchor Text links on various web pages. Moreover, if you are a Cadillac Dealership and want to rank high in the Google Search results, then putting Anchor Links on sites that are relevant to your niche will be a valuable necessity. Why? Because when the Google Spiders are crawling the Web, doing their thing, they will associate your Home Page with Cadillac Cars and thus you will rank high in the Search Results. The more Anchor Text Links you have on relevant sites pointing to your home page the better!

• Anchor Text links drive traffic directly to your website for free! If I'm in the market for buying a new Corvette, and I come across blog about the new Corvette and the word Corvette is an Anchor Text link, and I click that link, I am taken directly of whatever page the author has decided I should go to. This is a great tool for marketing your product....especially if I am taken to a New Chevrolet Dealership. Then hey, I want a Corvette and this site sells them....SOLD! Right if I only had 75k!!

  
  

I have never wanted nor do I care about HTML code. I would rather learn to speak Klingon! Luckily there are plenty of sources on the web to get Anchor Text code. There are a few things to consider before you start leaving Anchor Text links.

• Keywords...Keywords...Keywords: You have to come up with a small keyword portfolio that you can get ranked for. A keyword like "Corvette" has over 2.4 million pages with that in the title. Whereas "2009 Corvette" only has 43 thousand Webpages with this keyword in the title. Furthermore "New 2009 Corvette ZR-1" only has 41 pages of competition. So the more you narrow down a keyword (called longwinded keywords) the better of a chance you have on ranking at the top in Google.
• Relation to page content. You definitely want your keywords to relate to you website! Using an Anchor Text link like "Brittney Spears Gossip" to drive traffic to your EBay Page just because you think more people will click it is definitely not a good idea. Google is very smart and your site will be negatively affected.
• Using anchor Text links like "click here" are also a bad idea. Remember you are not only telling the human viewer what your page is about but you are also telling the Search Engines.

So take the code above and switch in your URL and Keyword. Insert that where you want/can...and you have done it!