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Hira Fahad is right. Your blog should be part of your website so that a quality content on your blog could share some ranking juice to your main website. Meanwhile you can also go further and create different web2.0 blogs & articles while linking back to your website & blog to get more rapid rankings
The main (official) blog for your website should be a part of your domain (not a subdomain or a blog on a blog hosting website like bloggers and wordpress) for example it should be www.example.com/blog
instead of:
www.blog.example.com
www.example-blog.wordpress.com
Reasons:
the internal blog will keep helping your website to rank on different competitive keywords by writing time to time posts on the targeted topics.
on contrary an external blog is only counted as a singal vote to your website's relevance.
The best way is to create an internal blog + different external blogs, lense and artical submissions to top article websites to create quality outbond relevant links from each important page and to get quailing inbound links to your important pages.
As already mention above Your blog should be part of your main domain , Internal linking is important part in your overall SEO strategy
Make it seprate so that you can use the traffic and make a traffice wheel.
