1. One has to beat the competitor and thus one has to get higher number of links incoming for the domain.
2. Higher PR links hold more value. Search for your your competitor, say you are number 3 for a keyword than let Yahoo help you. Go to Yahoo search engine and type LINKDOMAIN:YOURSITEURL and click enter and number of incoming links will be listed. Now you have to just get more links with higher PR than the site listed at top has got. So simple but lot of effort.
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