Squidoo was created by Seth Godin. He is a marketer and author. The Squidoo project is about topics. It is to help get an authoritative resource on the web for anyone to use. With the links gaining in importance, Seth decided to offer something that would allow a person to display their knowledge and gain links from it.
Anyone can become a Lensmater on the site. This means that anyone can create a site that offers top quality information. You can even use co- citation in order to gain more popularity on the site. Here is how that works. A search engine is going to look at the link on a page and find its relation to the website the link is on. If the link has no relationship it will affect your ranking for the worse. However, if the link matches your industry then it is more important. (Another reason to stay away from paid links is that they are generally not important, but harmful).
Now to gain a better ranking you can use co citation in which you have an authoritative site that is linked to your website. You will want to find keywords that will be used. For example, education and government sites are the best way to get keywords that you can use for the co site. By linking to government sites on Squidoo you get a co citation. You also get information that is imperative to your topic. You can link from Wikipedia on the Squidoo site as well. You will of course need to build a few links on your own to the Squidoo page, but over all you have something that adds more power to your pages.
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