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Google uses a concept called PageRank to
determine the placement of sites in their search engine results. It's
based on the number of incoming links and also on the quality of them.
As a rough example, if just one person with a PR of 8 links to a page,
it is better than 30 people of PR 2 linking to it.
On each page the PR is distributed to each of the links (including
internal links), so each link is a “vote”—BUT if you have a ton
of links on each page, each “vote” is diluted because the PR is
distributed between each link. This means if you have a lot of
external links on your pages, your internal links will be diluted and
you will be “giving away” your PR instead of “recycling” it.
There are a lot of complicated rules to Page Rank, and Google doesn't
explain them for obvious reasons. There is a lot of debate as to what
Google actually does, but here are some general observations:
Basically, as many people to link to you as possible without
“cheating” (see below). This increases your search engine
rankings, as you are seen as more “popular” and thus more
“relevant”.
To Avoid:
Google and other engines penalize certain site techniques that are
seen as trying to “cheat the system”. These include things like
link farms, free-for-all link pages (like Bravenet), and even webrings.
As a rule of thumb, if the links you are getting/receiving seem too
easy or will be replicated on many other sites (so they all have the
same list), then you may suffer in the rankings if you use these
methods. Some whole sites have been banned, and as Google is essential
to your traffic, this can be catastrophic to your site. (You won't be
penalized for them linking to you, only if you link to them.)
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