It is a known fact that Google assigns every single website page a Google Page rank, which is based on a complicated mathematical algorithm. Pages are ranked on a scale with zero as the lowest and ten as the highest. Interlinking of websites – external as well as inter – holds value so far as Page Rank is concerned.
If the site X links to the site Y, the latter gets credited with a percentage of Site X’s Page Rank which kind of gets passed cover to it. The Site X loses nothing so far as Page Rank is concerned – unless and until the link is to a bad neighborhood or a banned area.
An example to understand the situation better. Site X had a Page Rank of 5, there were only 2 outbound links to Site X. One of the outbound Links was intended to brand new Site Y. Brand new Site Y had 4 outgoing links, with NO other Incoming Links, apart from the one from Site X. Google awarded Site Y a Page Rank of 5.
From this example in real life, it is evident that fewer outbound links on a per page basis means a higher Page Rank.
If Site X in the above example had a huge amount of outgoing links on the page, in that case the percentage of Page Rank passed would have been smaller and the New Site Y would have received a lower rank than the equal rank that was passed.
Things to avoid
You can lose Page Rank and Search Engine Results if you link to sites that are considered Bad Neighborhoods or are Banned. Be alert and make sure you check before linking. Though sometimes you may not be “punished”, you won’t be gaining any benefits and the loss in PR of your site is not at all worth it.
Be aware of which sites the outbound links are linking your site to. Check your outbound links from time to time, ensuring that they are:
- Still an active website
- Still a resource for the reason you linked to them in the first place
- They have not changed formats or the theme and continue to be a quality site.
Page Rank improves over time. Though not very often, Google does update the Page Rank, once in say every four to eight months. So link exchange with like-themed sites or quality sites is the best possible SEO strategy.