There are three primary metatags that we are concerned with-as far as SEO goes- the keyword metatag, the title metatag, and the description metatag. Notice these are three separate things. They serve different functions. They also have different levels of importance to search engine optimization.
In level of importance:
1) The Title Tag
2) The Description Tag
3) The Keywords Tag

The Keywords metatag is a distant third.

The Title MetaTag
If you look across the top of your browser, you will see the Title Metatags I have filled out for this page. On the homepage of RoseOspreyMarketing.com the title tag reads:
Search Engine Optimization, Pay Per Click, Adwords Consultant
These are the primary keywords for the content on this page. This is where you put your best keywords, as this has the most bearing on SEO. It is okay to separate them with a comma, or a |. The goal is to get as many important words in there as possible without overflowing off the screen.
Each page on your site should have unique title tags. Also, you do not need to put your domain or brand name in your title tag. That is wasting valuable real estate.

If you are new to SEO, and you want to fill in your Title tags, how do you choose what words to put into the title metatag field: Look at the page you are editing and look for themes, or categories or products that are unique to this page. Stick those in the title tag.
Or, if there is a special word you’d like to rank for, and you’d like this page to be the landing page, put that special keyword in the title metatag on your page.

The Description MetaTag
The description metatag is used by certain search engines (like google and yahoo) to provide a “blurb” about your site on the search results page. Sometime search engines will show you an excerpt of text from the website, but often it will show the description metatag.
This is an opportunity for the savvy marketer to write some keyword rich copy that encourages searchers to click-through to your website. So, the description metatag will never be a list of keywords separated by commas. It has to actually be a sentence.
Other considerations:
Every page on your site needs to have a unique description metatag.
It should be 2-4 sentences. Too long or too short is not optimal.
The content of the description metatag should relate to the content of the page.
Add as many keywords in the copy as possible- but keep it readable.

The Keyword Metatag
The keywords metatag is a distant third in terms of importance to SEO. Many top SEOs ignore the keyword tag because they feel it is not cost effective, from a time-management perspective, to focus here. Time would be better spent on link building or developing content.
I would not recommend spending much time researching keywords for the metatags, but I do believe they should be populated with words relative to the content on the page.
Another good use for the keyword metatags is to put frequent misspellings of your topic in list form.
If your page is on leveling in Warcraft (the videogame) a good word for the keywords metatag might be “worcraft”(sic). In this way the search engines can know you have that content, but you don’t have to show your customers ugly misspellings.

One of the primary factors in most first-tier search engines’ algorithm is external links. You want links from other sites. Preferably one-way links, but reciprocal links have value also.

There are many web-directories on the internet- both broad and specific. In fact, before Yahoo was a search engine, it was (and is) a web directory. A web directory works on a business model similar to the Yellow Pages. You submit information to the directory, the directory hosts ads, advertisers pay money to the webmasters.

Some more “enterprising” webmasters have come up with a different business model to support their web directory. Everyone values incoming links to their site because of the SEO value. What would you pay to get a link to your site from the Google homepage? Obviously Google does not sell links, but you can imagine the value to your company.

A small web directory can provide a similar value on a much smaller scale.

However, there is a problem.

This practice of buying links is against Google’s terms of service and can get your site removed from the SERPS altogether.

Of course, it is not against Google’s policy to buy advertising on a site as long as you state that you are an advertiser. You can also buy “memberships” in organizations and “receive” links.

The practice is not as black and white as it appears. However, if your business is flagged by Google, and removed from the search engines, the results will be very black and white. It is best to err on the side of caution with your business.

Here are some examples of legitimate directories I have worked with. I will try to add to the list as I find more:

Web Directory List:

seo resources

dmoz.org

Organic is “free” traffic, in a sense. Organic’s only cost is the  labor put in to optimizing your site. Pay-per-click traffic costs you labor plus the cost of a click. That is, you are charged each time someone clicks on your ad.

This shows the search results for a random term "topaz jewelry".

Key

• The red areas are pay per click.
• The purple area is organic search.
• The green area (shopping results) is referred to as “paid inclusion”; it is managed through Google Base. This is usually managed by a feed. It is fairly cost effective, but you have very little control over when and where your products are shown.

For CEOs of Fortune 500 companies, this knowledge is probably all you need to converse with your search marketing department. Of course, it always helps to understand the “why”, and after reading this article you will be caught up.

Small business owners and SEOs must know more; but sometimes, in our chase to solve the mystery that is The Search Algorithm, we lose site of the fundamentals and goals. It is always good to be reminded what is important.

Concentrate on link building and adding text (or “content”) and you will improve the visibility and rankings of your site.

Why are links one of the two most important factors in SEO?
Links are an important part of SEO because of Google. Originally, Google’s Algorithm was based primarily on the following concept:
1) If site A has more inbound links than site B it must be “more popular”
2) If page B has more inbound links on it than page B it must be “more popular”

In Google’s collective mind, more links and more popularity equaled a more reputable page.

I am using the past-tense, because Google now uses links as only one of many factors that determines what site will show up number one in the search engine rankings. Supposedly there are over 200 variables used to in Google’s formula, though The Formula is a closely guarded secret.

Why is text one of the two most important factors in SEO?
Think about the act of “googling” or searching for something. You are typing words (text) into a form and telling a computer to “go find sites that have these words”. You are not drawing a picture, making a sound or downloading your memory (though that would be cool). Thus, a search cannot find pictures and sounds and videos unless they have corresponding text.

This is why your site with pictures (and only pictures) of cyclones is not ranked #1 for “cyclones”. The search engines just see that you have a picture file.* If you want your site to be search engine friendly, a good rule of thumb is to stick some text on your site.

*There are advanced techniques (beyond the scope of this article) that you can use to get around these problems. Speak to your SEO expert.