An example of anchor text is as follows:
The anchor text is a vital area of your website coding and is visible to all search engines. It is also visible to all human navigators of your website, this is the little text box that pops up over a link or an image.
Try not to over optimise your anchor text with your primary keyword; instead try using your secondary keywords or even synonyms of your primary.
When linking your website or pages to other pages or sites then ensure they are still active to avoid having a 404 error.