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it really depends on witch SE you're targeting, for example:
made the website, *only* did on-page optimization, site has barely to none links and ranks #1 for pretty competetive terms (real estate terms) in YAHOO! and MSN, in Google he can't be found on thoose competetive terms...
If you want Google-love, you need links
if you're trying to rank for terms that aren't on the page it makes it more difficult..
if you have great content it make it easier to ask and get links...
if you have good content, websites link to you without asking, people like to link to good resources/content
I think what is most important is to watch out for *over-optimization* my advice is don't worry to mutch about the optimization, focus on content. If you build quality content/websites, you will get thoose ranks sooner or later, atleast that's my experience.
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