how that page and domain rank for those same terms.
In order to build this trust, a site must be thought of as an expert for the terms. Typically this is show by inbound links that meet a combination of criteria. The most important is number of links combined with some sort of freshness multiplier. The more inbound links for a term the more trust. The freshness multiplier comes into effect when, for example, an older site might have more links for a term however has not had any recent links for those terms. A newer site with less overall links but many recent links for those terms might then have more trust. The logic is that data is timely so more new links earn more trust than many old links.
Beyond total number of links is links from other sites that have trust for the terms. So, for example, if a site wishes to rate for "dog breeding" having inbound links from other sites that rank well for "dog breeding" show to spiders than those trusted sites consider the linked to site a peer.
Finally, the terms in and around the anchor text of the referring link assign terms. So a link set with the text "dog breeding" in the previous example would pass on trust for that keyword phrase. This is thought to be the least heavily weighted method.
There are many other hypothesizes, however these seem to be the most prevalent and well trusted.
Inbound links are typically generated though networking in the niche community a site is looking to enter as well as using popular social networking sites (Digg, Reddit, StumpleUpon, Del.icio.us, Ma.gnolia) to increase the exposure of the site and, hopefully, gain inbound links from various sources. A campaign of using social networking sites intelligently to garner inbound links is typically referred to as "viral marketing."
In conclusion, SEO relies on both internal and external methods. The most important is a strong campaign of collecting links from valuable sources preferably in the same niche. The second most important is strong internal design so when a spider reaches the site it has the highest chance of success to index it correctly and rank it for preferred terms.
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