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Keyword stuffing is often visible in URLs for the tackier websites. There is a fine line between keyword stuffing, and legit keyword use in URLs, but it’s pretty obvious when someone crosses it!
You often see long strings of words with dashes between them for filenames. This happens primarily with blog or CMS type software where the filename is auto-generated from the page name. So we aren’t talking about that - we’re talking about deliberate keyword stuffing in a website.
First, there is content layering. Also a legit tactic, but one that is often abused as well. This refers to setting up folders on the site to hold categories, where the folders have a keyword for the name of the folder. One or two words is fine - three is borderline - four is pretty much over the limit.
If you have a CMS where you set up categories or sections in a site structure, the system often creates an artificial folder name from the categories. Be careful with this, because it is easy to end up with URLs that look like they have been keyword stuffed. Stick to one word names when you can - or enter a single name if they have a place where it is used for the URL (in Joomla, this is the Title Alias in J1.5 and later). Otherwise, be really careful about giving your categories names that are very long.
Keywords in URLs are a nudge factor, not a power play. So make sure you don’t go overboard on them - if your site looks like someone is trying to manipulate, a penalty from the search engines can make it difficult to compete. Keep them logical, human readable, and as simple as possible for maximum power.
More is not better. SMART is better.