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Our domain name is 'blueWidgetOnline.com', and we are aiming for 'blue widget' in search engines. When having other sites link to us, would it 'hurt' us to have the link titled 'blue widget online' instead of just 'blue widget'?
I have 7 independant Pr6 websites linking to this site, and I have complete control over their anchor text, and definately want to come out near the top for 'blue widget' :-)
In my own case, I used to use lots of variable wordy anchor texts, and when I shortened them to a 3-keyword phrase, my ranks improved for that. I then did the same for some 2-keyword phrases, and saw improvement again, and now I've started the process on an important single keyword, and I saw an improvement last month.
So, I'm starting to think that keyword dilution in anchor text, is something to be careful of.
How about this then:<a href="http://www.domain.com">Blue Widget</a><a href="http://www.domain.com"> Online</a>
Would that work?
This would dilute domain.com's relevancy for the key phrase "Blue Widget".
Unless you're in a very competitive niche linking all three words won't pose a problem provided you get enough inbounds.
If you absolutely have to get get maximum benefit from the anchor text, and you're willing to sacrifice the benefits that come with "natural" linking, Beachboy's suggestion above is a good solution:
<a href="http://www.domain.com">Blue Widget</a> Online.