Anchor text is the text you see in the link itself. Google uses this text to form a picture of how different web pages describe each other. If you sell outdoor equipment, you will use words related to outdoor air and outdoor equipment in the anchor text.
Google maps all the links that are available on the Internet, and when these links use words that describe what your website is about, this will help you to rank related search phrases.
This concept is similar to that of pointing at you and describing you with the word ‘free air equipment’. This is far more favourable than if they say "click here". The words external websites use in the anchor text are not always within your full control, but where you have influence you should make sure that this is done correctly.
Examples: Correct use:
“..these sellers outdoor equipment which is suitable for the Norwegian mountain world’
Wrong use:
‘For outdoor equipment suitable for the mountain; Click here“
Remember: descriptive and natural anchor texts for what the website is about.