Repeat Keyword Phrase or Use Variations
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Is it better to repeat a keyword phrase on a page's text that you have already used once, or to use a different variation of the keyword phrase?
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They sure can, try searching in Google for:
~SEO
You'll notice that even the phrase "search engine optimization" is emboldened, as Google knows it is a synonym.
Alan makes some good points, and I agree 100% about not making the text read clearly; websites are for people first. However, sometimes making it read clearly means using synonyms or secondary target keyword phrases.
I'd say if you are targeting a single keyword then maybe it isn't so important, but with phrases of 3 words or so then the secondary phrases or phrase synonyms it does become more important if you want to target those search terms also.
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Can SE's figure this out?
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Yes it is good to get variations, but google aslready knows them, if you put SEO, it knows you also mean Search Engine Optimization, so its not like you wont rank for them, you will always rank higher for the variation you use.
but the most imporatant think is, do not go un-natural in order to fit in keywords. Keyword stuffing is a real worrie.
If you cant fit them in without sounding wierd, dont do it. Swaping terms each time you mention the same object can be un-natural. you would not be the first to do it and it would not be the first time SE's have seen it -
Agree with Tom.
Synonyms and secondary target keyword phrases are a must on any given page.
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I would say a bit of both. It is fine to repeat your primary keyword phrase several times on the page; the number of times depends upon the amount of content. SEOmoz's On Page tool recommends 4 repetitions. However, you should also try to use some synonyms and secondary target keyword phrases also.
A good resource I saw posted today which might be of interest:
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I'd look at variations to minimize the thought of duplicate content. Also, it allows you to develop additional keywords -- possibly "long tail"
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