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Alright, then how can I use algorithm to my advantage?
There are quite a few things to focus on when optimizing your site for Google algorithm, but most important ones would have to be inbound links to your site and good, relevant content. Other things come into play, such as click through rates, frequency of updates to your site, physical address listed in your whois information, technical and administrative contacts, your host's IP address, and length of time your domain name is registered for. All of these things, although some are weighed more than others, have a serious impact on your rankings and on your PR (Google Page Rank).
Having a high volume of inbound links, or links coming from other related sites to your own, is king with Google, although there are specific "rules" you must follow to be sure that these links are counted as "suitable links." Get as many links back to your site as possible, but be sure these links are from related sites, or at least are in a category on their links page that is closely related to your own. Also, try to stay away from "FFA" pages, free for all listings pages with thousands of links on a single page, as these actually prove to be a detriment to your site in search engine listings. This would also include doorway or portal sites, which focus on having as many links to their site as they can, with as many keywords stuffed into site as possible, as an alternative to real content.
Be sure to alter your text links slightly from time to time. Google's algorithm picks up on varied text links to your site much more than if they are all same. This also helps to assure spiders that your links were not spammed out to sites you are listed on.
If having a multitude of links is #1 on your priorities list, then having a large selection of unique, relevant content should be #2. There are so many benefits to having a lot of original content on your site that it's hard to list all of them. The most obvious would be amount of keywords and phrases that are picked up by search engines spidering your site. Original content also helps to prove that your site is not a "spammer" who simply stealing articles and content from other sites to attract more visitors. Increased traffic is another major benefit from having a lot of relevant content, which is never something to scoff at.
Overall, unique, relevant content is as much a requirement for getting high listings as getting high quality links to your site, if not more so. Focus on both equally, and make sure both your content and your links page are updated monthly at very least. Ideally, you would want a high volume of incoming links being added daily, as well as site updates with fresh content, but if you don't have time or energy for constant writing and editing of your site, you should still be okay. Just remember, you will only get out of algorithm what you put into it.
Other Optimization Tips
Generally, just try and be careful on how you promote your website, and how it appears to Google in first place. If you keep your site clean and updated often and your whois information current, you should have no problem getting decent listings on desired keywords. Just make sure your site in no way resembles a Spam site, either through falsified contact information or physical address, or through amount of keywords used on each page, or having your domain name registered for only one year.
For more detailed information on strategies and tips for utilizing Google Algorithm, refer to Advanced Uses for Google Algorithm
You can see other articles by Claude Beavers on this topic at: Online Promotion Articles at Superfaster.com