Now don't get me wrong. I'm not saying it's not important. I still try to find good keywords, make sure they're in my page title, meta description, and keywords. As far as density, I don't really worry about it. I'll put the keyword in the first and last 100 words, but outside of that, I only put it in if it feels natural to do so.
As far as "off page" SEO, It's becoming more important to do what my brother likes to call Relationship Marketing... In other words, build the relationship with potential customers with everything you do. Whether it's visiting forums, commenting on other blogs, guest posting, or social media, building relationships is more important in the long run than almost anything else you can do.
The thing is, relationship marketing takes effort and time... something most people are not willing to do. But if you learn to do it properly, you just might find out that you are getting traffic regardless of your search engine rankings -- which *WILL* naturally go up. And if Google does make an algorithm change, you won't lose nearly as much traffic.
Worry about the "On page" factors (outside of density), then with everything else, build relationships, and your rankings will improve.
I know with my own site, I began last September to primarily focus on blog and forum commenting and doing some work with twitter and Facebook. At the time, I was only getting about 100 visitors a month. Within a few weeks, I was getting about 800. Then I left off for a few months, not really adding any new posts or doing much work at all on the site. My traffic grew almost 50% without me doing anything else. If I had not gotten distracted into my comfort zone, I bet I could have doubled (or more) that traffic.
So focus on building relationships, here and elsewhere, and you'll find yourself making progress.
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