A great number of public networks call themselves “private”. That’s not true. If the network is advertised, it cannot be private. We witnessed cases when Google destroyed such public networks and all the websites which had used them. They are easy to be revealed due to a huge number of outbound homepage links which are irrelevant to each other. Their posts are short, and they cannot really block SEO crawlers.
Gotta love Google. They turn the entire SEO/webmaster world on its head with an announcement of a new attribute in 2005. We all go out and make changes to our sites to take advantage of this new algorithm change that is said to benefit out sites. And then 2 years later, they change their mind and rewrite the code – and dont bother to tell anyone. And then a YEAR LATER, they make an announcement about it and defend the change by saying “the change has been in effect for over a year, so if you haven’t noticed obviously it isnt that big a deal”
I think Matt Grenville’s comment is a very valid one. If your site, for whatever reason, can not attract links naturally and all of your competitors are outranking you by employing tactics that might breach Google’s TOS, what other options do you have? As well as this people will now only link to a few, trusted sites (as this has been clarified in your post as being part of Google’s algorithm) and put a limit on linking out to the smaller guys.
A decent article which encourages discussion and healthy debate. Reading some of the comments I see it also highlights some of the misunderstandings some people (including some SEOs) have of Google PageRank. Toolbar PageRank is not the same thing as PageRank. The little green bar (Toolbar PageRank) was never a very accurate metric and told you very little about the value of any particular web page. It may have been officially killed off earlier this year, but the truth is its been dead for many years. Real PageRank on the other hand, is at the core of Google’s algorithm and remains very important.
Our agency can provide both offensive and defensive ORM strategies as well as preventive ORM that includes developing new pages and social media profiles combined with consulting on continued content development. Our ORM team consists of experts from our SEO, Social Media, Content Marketing, and PR teams. At the end of the day, ORM is about getting involved in the online “conversations” and proactively addressing any potentially damaging content.
The formula uses a model of a random surfer who gets bored after several clicks and switches to a random page. The PageRank value of a page reflects the chance that the random surfer will land on that page by clicking on a link. It can be understood as a Markov chain in which the states are pages, and the transitions, which are all equally probable, are the links between pages.
You can confer some of your site's reputation to another site when your site links to it. Sometimes users can take advantage of this by adding links to their own site in your comment sections or message boards. Or sometimes you might mention a site in a negative way and don't want to confer any of your reputation upon it. For example, imagine that you're writing a blog post on the topic of comment spamming and you want to call out a site that recently comment spammed your blog. You want to warn others of the site, so you include the link to it in your content; however, you certainly don't want to give the site some of your reputation from your link. This would be a good time to use nofollow.
9. Troubleshooting and adjustment. In your first few years as a search optimizer, you’ll almost certainly run into the same problems and challenges everyone else does; your rankings will plateau, you’ll find duplicate content on your site, and you’ll probably see significant ranking volatility. You’ll need to know how to diagnose and address these problems if you don’t want them to bring down the effectiveness of your campaign.

Page Ranks Denver