How To Create A Search Engine Friendly Website:
Tip #1: Proper selection of domain name and layout

Including keywords in the domain name of your site is obviously of great significance. Search bots give special importance to the site name, and your site's name gives visitors an instant idea of what your site is all about.  The layout of the site also has to be done with great care. The site should have a perfect linking structure and should have all the main links directly from the homepage (also known as "horizontal link structure"). It is best not to have more than 100 links from your home page, whether they link to another web site, or pages within your site.

Tip #2: Creating a directory structure

All sites except small ones will have a directory structure. You have to plan a directory structure before building the site at the same time bear in mind that the directories that lie too deep are very difficult to scan. Proper care should be taken for naming of directories; it should be named on the basis of the content.

Tip #3: Remove frames

Search bots find it difficult to search the sites that use frames. So it is always a good idea not to use frames. In case your website use frames be sure to make use of  the "no frames" tags, so that the search bots can crawl the sites and get required information easily. This will definitely help in improving your ranking.

Tip #4: Make use of external CSS style sheets

Making use of external style sheets is considered as a great idea because it reduces the overall complexity of the site. This ensures efficient crawling by search engines. So make sure to include CSS files in your site. If possible making use of CSS tables would be a better idea than traditional tables.

Tip #5: Forming and naming of files

The names of the file can be based on title tags which is normally the most important keyword. This also helps in better search engine position of those keywords.

Tip #6: Hosting of the site

Selecting a hosting provider who offers 99% uptime guarantee ensures that your site will be reachable to spiders all times. Also make sure that your web hosting server supports the ‘If-Modified-Since-HTTP header'.

Tip #7: Proper balancing of graphics and content

The search bots can see only plain HTML code. So it is very important to avoid using too many graphics and/or flash animations on your site. Search engines also cannot read javascript, so use this method sparingly, as well.  As a general rule, always favor text content over graphics.

Tip #8: Keep a view on content and links

Do not have too many links on a single page. It is always better to limit the number of  links on a single page to less than 100. It is advisable to keep the content on a single page between 200 to 1500 words.
Tip #9: Use Alt Tags On Graphic Files

Take advantage of alt tags when using picture files.  A bot can't read a picture or graphic obviously, so choose an alt tag that describes the graphic, using your important keywords whereever possible. It is important that you do not spam your page with keywords using this method, though.

Tip #10: Sitemaps!

Submit your xml sitemap to Google Sitemaps regularly, and a text sitemap to Yahoo regularly.  It doesn't make your site appear higher in searches, but it ensures your entire site has a better chance of being crawled.

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Every website needs good, targeted traffic, and by far the best targeted traffic comes from search engines.  The basic aim behind search engine optimization (SEO) is to make the job of the search engine bots as easy as possible, so they crawl each and every page on your site. Every webmaster wants his site to be search engine friendly, but at the same time be appealing to human eyes as well.

Creating a search engine friendly website is not a daunting task, but it does require some effort. Keep these tips in mind while designing your site to keep the search engines happy: