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Keyword Development

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How much sense does it make, to develop keywords that are seldom used?

There are two schools of thought here. One SEO School says that the keywords selected to be used throughout the website should be the least competitive keywords so it is much more likely to be found in the search results. The other SEO School says to develop the natural keywords throughout the website along with logical variations of keyword phrases including plural uses of the keyword and various tenses using proper writing syntax and grammar.

Which do you think is right?

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