If you can find me evidence that nofollow links are as good as going after high quality, relevant, do follow links I'll listen to the ways of the jedi. :-)
I wouldn't say this was one of the most effective ways. Not only are many of these nofollow links (which have little or no seo value) but Google doesn't treat these as good quality backlinks. Worth doing yes, but definitely not "one of the most effective ways of generating backlinks"
Like Jacks said, it's probably just Google updating something or playing with their algorithms again. Seems strange that the competition jumped so much though.
Twitter is more a way of building a profile for yourself or your website and ultimately driving traffic to your site. SEO is about getting higher in the search engines. So no, Twitter doesn't really have any affect on SEO.
Most important tip for me is links links links. But don't just get any old rubbish. 1 high qualiity and relevant link is better for ranking than hunders of rubbish quality, irrelevant links.
Get the SEOmoz toolbar for firefox (it has a nofollow button on it so you can check the no follows on the page). Then look for as many shopping forums as you can. Look for links in the posts and press the nofollow button. If it highlights the link then it's a nofollow link. If not, then...
Some SEO tips for you:
Keyword research - look for good key phrases that you can realistically compete with (use Google Keyword Tool)
Good title tag (get your priority key phrase in there)
Good meta description (again, remember your keywords)
Good content and plenty of it
Links links links...
SEO will be pretty much the same yes. But if you're concentrating on UK traffic then remember:
Do you keyword research based around UK traffic.
Gain backlinks from other UK sites of good quality and relevance.
Keep an eye on you rankings for Google.co.uk
Good luck.
Yeah, you do have to be careful when it comes to link buying. If your budget is low then try building quality relevent links yourself. Look for sites relevent to yours and of decent quality (some people look at the page rank here) and mail their webmaster asking if you can have a link on their...
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