With recent Google algorithm updates, it is not that easy to get great rankings. But, fortunately it is possible to get good rankings if you preform right things and it depends on your targeting keywords. To rank high, you need to do various things.
1. On-page optimization has a big impact with long keywords
The degree of on-page optimization will be high, if you are able to target long keywords and with little external competition.
If you want to be listed for the search term "the nashville etymologists club t-shirts" then, it is sufficient to optimize only the web page that is having the search term because there is not much competition for that key phrase.
If you target more of competitive keywords, you should have more backlinks that are of good quality or non-spammy in order to rank high in the search results of Google.
2. On-page optimization is important even for more competitive keywords
To rank high in the Google and other search engines on-page optimization is the main factor, it is the foundation.
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With particular keyword or phrase if you optimize the web page then this shows that you are instructing the search engine that the web page is highly relevant to that particular key phrase. If you are optimizing more number of web pages which is usually more than one for the same keyword or phrase then the web page which is having best inbound links will rank higher in the search results.
3. Start with content optimization, then move to backlinks
The first step to rank high in the Google for a particular keyword is to optimize the web page for that keyword. Know work on the links that is linked to the page that is optimized to outrank other sites which are optimized for the same keyword.
4. The more you optimize the better
When you are optimizing your website, start optimizing different pages of your website for various keywords or phrases. To do it, start with long keywords or phrases that are not much of competition and then move with more competitive keywords.
As Google is able to identify that your website is having relevancy to the topic it becomes easier to rank high for more competitive keywords.
It is better to optimize the number of pages of your website for different and related keywords.
5. Not necessary to have more number of links compared to your competitors
You don't need to have more links when compared to your competitors. It is rather better to have better links than more in quantity.
Instead of focusing on quantity, focus on the quality. Getting links in bulk from a forum will not help your site as much as a few dozens links that come from relevant web pages that have authority.
It is much easier to outrank the other websites if you have optimized web pages along with good inbound links.
You don't have to worry about Google penalties if you use white-hat SEO techniques or methods to promote your web pages. Though white-hat techniques need more work, but they will help in getting high rankings that lasts long.
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