You can confer some of your site's reputation to another site when your site links to it. Sometimes users can take advantage of this by adding links to their own site in your comment sections or message boards. Or sometimes you might mention a site in a negative way and don't want to confer any of your reputation upon it. For example, imagine that you're writing a blog post on the topic of comment spamming and you want to call out a site that recently comment spammed your blog. You want to warn others of the site, so you include the link to it in your content; however, you certainly don't want to give the site some of your reputation from your link. This would be a good time to use nofollow.

Keyword analysis. From nomination, further identify a targeted list of key­words and phrases. Review competitive lists and other pertinent industry sources. Use your preliminary list to determine an indicative number of recent search engine queries and how many websites are competing for each key­word. Prioritize keywords and phrases, plurals, singulars and misspellings. (If search users commonly misspell a keyword, you should identify and use it). Please note that Google will try to correct the term when searching, so use this with care.