How Important are Internal links?

[MoeezLodhi]

This post is deleted!

[Chris.Menke]

Moeez,

Internal linking with anchor text is fine but it should be done in a manner that assists the visitor, not in a manner that hits them over the head with spammy anchor text links all over every page.  When it's appropriate to link to another page because information on that page is helpful to the reader, it's worthwhile.  Keep in mind, anchor text can help a bit with relevance of the page being linked to but it will not be a super-strong signal, regardless of how it's implemented.

Matt Cutts mentions that there isn't any penalty for having too many anchor text links from within your domain pointing to any given page.  You can also take this to mean that there's really no particular value being derived by having a bunch of anchor text links pointing to a page.  On closer inspection, you may find that there is some other reason that your competitor's page is ranking the way it is.

http://www.seroundtable.com/google-internal-links-anchor-text-16864.html