A PageRank results from a mathematical algorithm based on the webgraph, created by all World Wide Web pages as nodes and hyperlinks as edges, taking into consideration authority hubs such as cnn.com or usa.gov. The rank value indicates an importance of a particular page. A hyperlink to a page counts as a vote of support. The PageRank of a page is defined recursively and depends on the number and PageRank metric of all pages that link to it ("incoming links"). A page that is linked to by many pages with high PageRank receives a high rank itself.
Muratos – I’ve never nofollowed Amazon affiliate links on the theory that search engines probably recognize them for what they are anyway. I have a blog, though, that gets organic traffic from those Amazon products simply because people are looking for “Copenhagen ring DVD” and I hard-code the product names, musicians’ names, etc. on the page rather than use Amazon’s sexier links in iframes, etc.
In the beginning, it was rough for Sharpe. No one out there should think that it's going to be easy whatsoever. His journey took years and years to go from an absolute beginner, to a fluid and seasoned professional, able to clearly visualize and achieve his dreams, conveying his vast knowledge expertly to those hungry-minded individuals out there looking to learn how to generate a respectable income online.
Thanks for sharing this, Matt. I’m happy that you took the time to do so considering that you don’t have to. What I mean is, in an ideal world, there should be no such thing as SEO. It is the SE’s job to bring the right users to the right sites and it is the job of webmasters to cater to the needs of the users brought into their sites by SEs. Webmasters should not be concerned of bringing the users in themselves. (aside from offsite or sponsored marketing campaigns) The moment they do, things start to get ugly because SEs would now have to implement counter-measures. (To most SEO tactics) This becomes an unending spiral. If people only stick to their part of the equation, SEs will have more time to develop algorithms for making sure webmasters get relevant users rather than to develop algorithms for combating SEOs to ensure search users get relevant results. Just do your best in providing valuable content and Google will try their best in matching you with your users. Don’t waste time trying to second guess how Google does it so that you can present yourself to Google as having a better value than you really have. They have great engineers and they have the code—you only have a guess. At most, the SEO anyone should be doing is to follow the webmasters guidelines. It will benefit all.
Wow Brian…I’ve been making and promoting websites full-time since 2006 and just when I thought I’ve seen it all, here you are introducing me to all these innovative ways of getting backlinks that I wasn’t aware of before. I never subscribe to newsletters, but yours is just too good to say no to! Thanks very much for this information. Off to read your other posts now…
Matt Cutts, it’s Shawn Hill from Longview, Texas and I’ve got to say, “you’re a semseo guru”. That’s obviously why Google retained you as they did. Very informative post! As head of Google’s Webspam team how to you intend to combat Social Networking Spam (SNS)? It’s becoming an increasingly obvious problem in SERPs. I’m thinking Blogspam should be the least of Google’s worries. What’s your take?
Companies often use email marketing to re-engage past customers, but a “Where’d You Go? Want To Buy This?” message can come across as aggressive, and you want to be careful with your wording to cultivate a long-term email subscriber. This is why JetBlue’s one year re-engagement email works so well -- it uses humor to convey a sense of friendliness and fun, while simultaneously reminding an old email subscriber they might want to check out some of JetBlue’s new flight deals.
This is the argument that quickly emerged about blog comments recently. Say I have an article on a blog with 5 links in the editorial copy — some of those links leading back to other content within the blog that I hope to do well. Then I get 35 comments on the article, with each comment having a link back to the commenters’ sites. That’s 40 links in all. Let’s say this particular page has $20 in PageRank to spend. Each link gets 50 cents.
I compare the latest Google search results to this: Mcdonalds is the most popular and is #1 in hamburgers… they dont taste that great but people still go there. BUT I bet you know a good burger joint down the road from Google that makes awesome burgers, 10X better than Mcdonalds, but “we” can not find that place because he does not have the resources or budget to market his burgers effectively.
However, before learning any of that, it's important that you get a lay of the land, so to speak. If you truly want to understand the field of internet marketing, Sharpe has some very good points. In essence there are four overall steps to really understanding internet marketing and leveraging the industry to make money online. Depending on where you are with your education, you'll be somewhere along the lines of these four steps.

PageRank as a visible score has been dying a slow death since around 2010, I’d say. Pulling it from the Google Toolbar makes it official, puts the final nail in the visible PageRank score coffin. The few actually viewing it within Internet Explorer, itself a depreciated browser, aren’t many. The real impact in dropping it from the toolbar means that third parties can no longer find ways to pull those scores automatically.
How many times do we need to repeat the calculation for big networks? That’s a difficult question; for a network as large as the World Wide Web it can be many millions of iterations! The “damping factor” is quite subtle. If it’s too high then it takes ages for the numbers to settle, if it’s too low then you get repeated over-shoot, both above and below the average - the numbers just swing about the average like a pendulum and never settle down.
Secondly, nofollow is also essential on links to off-topic pages, whether they’re internal or external to your site. You want to prevent search engines from misunderstanding what your pages are about. Linking relevant pages together reinforces your topic relevance. So to keep your topic silos clear, strategic use of the nofollow attribute can be applied when linking off-topic pages together.

When deciding on your niche, you have to actually start a blog or a website that's going to be your online hub. This is where your anchor content is going to live. Everything else will link to here. All the ads you run and traffic you drive through social media or SEO or anything else will all come here. You need a custom domain and a professional looking site if you want anyone to take you seriously.
Ask for a technical and search audit for your site to learn what they think needs to be done, why, and what the expected outcome should be. You'll probably have to pay for this. You will probably have to give them read-only access to your site on Search Console. (At this stage, don't grant them write access.) Your prospective SEO should be able to give you realistic estimates of improvement, and an estimate of the work involved. If they guarantee you that their changes will give you first place in search results, find someone else.
I work on a site that allows users to find what they are looking for by clicking links that take them deeper and deeper into the site hierarchy. Content can be categorised in lots of different ways. After about three steps the difference between the results pages shown is of significance to a user but not to a search engine. I was about to add nofollow to links that took the browser deeper than 3 levels but after this announcement I won’t be…

1. Apparently, external linking of any kind bleeds PR from the page. Following or nofollowing becomes a function of whether you want that lost PR to benefit the other site. Since nofollow has ceased to provide the benefit of retaining pagerank, the only reason to use it at all is Google Might Think This Link Is Paid. Conclusion: Google is disincentivizing external links of any kind.
As I was telling Norman above, these days what we’ve come to call content marketing is really a big part of “link building.” You can’t buy links, and “you link to me I’ll link to you” requests often land on deaf ears. Its really all about creating high quality content (videos, images, written blog posts) that appeals to the needs/wants of your target market, and then naturally earning inbound links from sources that truly find what you have to offer worth referencing.

Re: Cameron’s Comment. Google transparent? Maybe. Great products for users – yes… but they operate from lofty towers. Can’t get a hold of them. Can’t contact them. They are the ONLY company in the world with zero customer support for their millions of users. Who really knows what they are doing from one month to the month in regards to ranking sites… etc.
When calculating PageRank, pages with no outbound links are assumed to link out to all other pages in the collection. Their PageRank scores are therefore divided evenly among all other pages. In other words, to be fair with pages that are not sinks, these random transitions are added to all nodes in the Web. This residual probability, d, is usually set to 0.85, estimated from the frequency that an average surfer uses his or her browser's bookmark feature. So, the equation is as follows:

If you are using Responsive Web Design, use meta name="viewport" tag to tell the browser how to adjust the content. If you use Dynamic Serving, use the Vary HTTP header to signal your changes depending on the user-agent. If you are using separate URLs, signal the relationship between two URLs by tag with rel="canonical" and rel="alternate" elements.
I first discovered Sharpe years ago online. His story was one of the most sincere and intriguing tales that any one individual could convey. It was real. It was heartfelt. It was passionate. And it was a story of rockbottom failure. It encompassed a journey that mentally, emotionally and spiritually crippled him in the early years of his life. As someone who left home at the age of 14, had a child at 16, became addicted to heroin at 20 and clean four long years later, the cards were definitely stacked up against him.
This is what happens to the numbers after 15 iterations…. Look at how the 5 nodes are all stabilizing to the same numbers. If we had started with all pages being 1, by the way, which is what most people tell you to do, this would have taken many more iterations to get to a stable set of numbers (and in fact – in this model – would not have stabilized at all)
In today’s world, QUALITY is more important than quantity. Google penalties have caused many website owners to not only stop link building, but start link pruning instead. Poor quality links (i.e., links from spammy or off-topic sites) are like poison and can kill your search engine rankings. Only links from quality sites, and pages that are relevant to your website, will appear natural and not be subject to penalty. So never try to buy or solicit links — earn them naturally or not at all.
Targeting, viewability, brand safety and invalid traffic: Targeting, viewability, brand safety and invalid traffic all are aspects used by marketers to help advocate digital advertising. Cookies are a form of digital advertising, which are tracking tools within desktop devices; causing difficulty, with shortcomings including deletion by web browsers, the inability to sort between multiple users of a device, inaccurate estimates for unique visitors, overstating reach, understanding frequency, problems with ad servers, which cannot distinguish between when cookies have been deleted and when consumers have not previously been exposed to an ad. Due to the inaccuracies influenced by cookies, demographics in the target market are low and vary (Whiteside, 2016).[42] Another element, which is affected within digital marketing, is ‘viewabilty’ or whether the ad was actually seen by the consumer. Many ads are not seen by a consumer and may never reach the right demographic segment. Brand safety is another issue of whether or not the ad was produced in the context of being unethical or having offensive content. Recognizing fraud when an ad is exposed is another challenge marketers face. This relates to invalid traffic as premium sites are more effective at detecting fraudulent traffic, although non-premium sites are more so the problem (Whiteside, 2016).[42]
Page and Brin's theory is that the most important pages on the Internet are the pages with the most links leading to them. PageRank thinks of links as votes, where a page linking to another page is casting a vote. The idea comes from academia, where citation counts are used to find the importance of researchers and research. The more often a particular paper is cited by other papers, the more important that paper is deemed. 
PageRank relies on the uniquely democratic nature of the web by using its vast link structure as an indicator of an individual page’s value. In essence, Google interprets a link from page A to page B as a vote, by page A, for page B. But, Google looks at considerably more than the sheer volume of votes, or links a page receives; for example, it also analyzes the page that casts the vote. Votes cast by pages that are themselves “important” weigh more heavily and help to make other pages “important.” Using these and other factors, Google provides its views on pages’ relative importance.
Now, back to that webmaster: When reaching out, be friendly and introduce yourself. Tell this individual that he or she is linking to some resources that are no longer available. Always provide the exact location of the broken links, so they can be easily found. Give some alternatives to replace those links, including your own website. Try to be helpful, not greedy to get a backlink. Often, this method will work, but there will be cases when the webmaster will refuse to link back to you.
I think it is important you distinguish your advice about no-following INTERNAL links and no-following EXTERNAL links for user-generated content. Most popular UGC-heavy sites have no-followed links as they can’t possibly police them editorially & want to give some indication to the search engines that the links haven’t been editorially approved, but still might provide some user benefit.
I have not at all seen the results I would expect in terms of page rank throughout my site. I have almost everything pointing at my home page, with a variety of anchor text, but my rank is 1. There is a page on my site with 3, though, and a couple with 2, so it certainly is not all about links; I do try to have somewhat unique and interesting content, but some of my strong pages are default page content. I will explore the help forum. (I guess these comments are nofollow :P) I would not mind a piece of this page rank … 

Google has a very large team of search quality raters that evaluate the quality of search results, that gets fed into a machine learning algorithm. Google’s search quality rater guidelines provide plenty of detail and examples of what Google class as high or low quality content and websites, and their emphasis on wanting to reward sites that clearly show their expertise, authority and trust (EAT).
1. Now that we know that weight/PageRank/whatever will disappear (outside of the intrinsic wastage method that Google applies) when we use a ‘nofollow’ link, what do you think this will do to linking patterns? This is really a can of worms from an outbound linking and internal linking perspective. Will people still link to their ‘legals’ page from every page on their site? Turning comments ‘off’ will also be pretty tempting. I know this will devalue the sites in general, but we are not always dealing with logic here are we? (if we were you (as head of the web spam team) wouldn’t of had to change many things in the past. Changing the PageRank sculpting thing just being one of them).

However, if you're like the hundreds of millions of other individuals that are looking to become the next David Sharpe, there are some steps that you need to take. In my call with this renowned online marketer, I dove deep the a conversation that was submerged in the field of internet marketing, and worked to really understand what it takes to be top earner. We're not just talking about making a few hundred or thousand dollars to squeak by here; we're talking about building an automated cash machine. It's not easy by any means.
The green ratings bars are a measure of the importance Google’s assessment of the importance of a web page, as determined by Google’s patented PageRank technology and other factors. These PageRank bars tell you at a glance whether other people on the web consider Google considers a page to be a high-quality site worth checking out. Google itself does not evaluate or endorse websites. Rather, we measure what others on the web feel is important enough to deserve a link. And because Google does not accept payment for placement within our results, the information you see when you conduct a search is based on totally objective criteria.
3. General on-site optimization. On-site optimization is a collection of tactics, most of which are simple to implement, geared toward making your website more visible and indexable to search engines. These tactics include things like optimizing your titles and meta descriptions to include some of your target keywords, ensuring your site’s code is clean and minimal, and providing ample, relevant content on every page. I’ve got a huge list of on-site SEO tactics you can check out here.

For example, it makes a much bigger difference to make sure that people (and bots) can reach the pages on your site by clicking links than it ever did to sculpt PageRank. If you run an e-commerce site, another example of good site architecture would be putting products front-and-center on your web site vs. burying them deep within your site so that visitors and search engines have to click on many links to get to your products.

If you are serious about improving web traffic to your website, we recommend you read Google Webmasters and Webmaster Guidelines. These contain the best practices to help Google (and other search engines) find, crawl, and index your website. After you have read them, you MUST try our Search Engine Optimization Tools to help you with Keyword Research, Link Building, Technical Optimization, Usability, Social Media Strategy and more.
Unfortunately, SEO is also a slow process. You can make “quick wins” in markets which are ill-established using SEO, but the truth is that the vast majority of useful keyphrases (including long-tail keyphrases) in competitive markets will already have been optimized for. It is likely to take a significant amount of time to get to a useful place in search results for these phrases. In some cases, it may take months or even years of concentrated effort to win the battle for highly competitive keyphrases. 
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