Regarding inbound links, two things are important:
- the quality and topic of the page where the link originates should be relevant to your topic, and
- the words on the text used to link to you must contain your preferred keywords: if those links say "Dallas Web Design Company", the search engines will conclude that you are a web design company based in Dallas (by the same token, the words "click here" won't tell search engines anything about your site).
Importance of Number of Links on the Page
Any page only has a certain amount of link popularity which it can redistribute to other pages.
Quality of Inbound Links
A popular web site that links to you prominently that itself has many inbound links
Relevance of Inbound Links
A search engine is likely to view a link from a semantically related web page as more valuable than a link from a random unrelated one