This code:
(you can click it to get a larger view)
Looks like this:
KuyaKevin.com: Real Relationship Advice
The first part of the code (with the website address) is the actual link.
The second part of the code is called the anchor text--the actual text which will appear on the website.
Here's where the anchor text is important--the more embedded links you have with a specific anchor text, the higher your page rank for those specific keywords.
For, let's say thousands of people put the above html link on their websites. I would rank very highly for the term "real relationship advice."
This is useful during link exchanges. You may want to ask people to set certain anchor texts for your link (blogger does this automatically when someone adds a link--the user simply names the link instead of using html code). Let's say I want to rank higher for "Youth Ministry." I would just put this term in my anchor text for links to my website, and I would ask future link exchangers to do the same.
The code would look like this:
And it would look like this on the website:
Youth Ministry
The link is the same--I've only changed the anchor text.
I keep a copy of my embedded link in a text document on my computer's desktop. It's a handy way to copy and paste it into comments, etc.