Forum Moderators: martinibuster
Internal linking is important for a variety of reasons. The most important, of course, so that your site visitors and SE spiders can find all of your pages.
For Google, just as links from external sites passes PR to your pages, internal links also pass their PR to the pages they link to. So, as you build your external links that PR is distributed to other pages on your site, depending on your navigation structure.
As on-page elements themselves, most SEs give keywords in link anchor text more weight than occurrences in plain text. If your home page links to sub-categories "Blue Widgets," "Orange Widgets," etc., you're telling the SEs (and your visitors!) that that's what the page is about.
Similarly, internal pages should link to the home page by something like "Blue Widgets Home" instead of just "Home."
So, keep building the external links, spread Google PR around to your internal pages and reinforce your keywords in anchor text.
Jim