Excellent! I was wondering when Google would finally release information regarding this highly controversial issue. I have always agreed with and followed Matt’s advice in having PR flow as freely as possible, natural linking is always the best linking in my experience with my search engine experience and results. I am very glad that you have addressed the topic of nofollow links having no effects in the Google SERPs, I was getting tired of telling the same topics covered in this article to my clients and other “SEOs”. 

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I’ve never been particularly enamoured with nofollow, mainly because it breaks the “do it for humans” rule in a way that other robots standards do not. With other standards (e.g. robots.txt, robots meta tag), the emphasis has been on crawling and indexing; not ranking. And those other standards also strike a balance between what’s good for the publisher and what’s good for the search engine; whereas with nofollow, the effort has been placed on the publisher with most of the benefit enjoyed by the search engine.
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…
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Thanks for the clarification, Matt. We were just wondering today when we would hear from you on the matter since it had been a couple of weeks since SMX. I think we’d all be interested to know the extent to which linking to “trusted sites,” helps PageRank. Does it really mitigate the losses incurred by increasing the number of links? I ask because it seems pretty conclusive that the total number of outbound links is now the deciding metric for passing PageRank and not the number of DoFollow links. Any thoughts from you or others?
But bear in mind that you can't guest post just anywhere and expect that it'll help. In fact, for years black hatters have perverted the value of guest posts by 'creating private blog networks,' which put out mass quantities of low-quality content for the sole purpose of exchanging backlinks. Google has caught on to this, and penalizes websites accordingly. So, you want to ensure that you only provide guest posts to reputable, respected websites that are relevant to your industry.
The flood of iframe and off-page hacks and plugins for WordPress and various other platforms might not come pouring in but I’m willing to bet the few that come in will begin to get prominence and popularity. It seemed such an easy way to keep control over PR flow offsite to websites you may not be ‘voting for’ and afterall, isn’t that way a link has always represented. It would seem Google should catch up with the times.

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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.
A: For a couple reasons. At first, we figured that site owners or people running tests would notice, but they didn’t. In retrospect, we’ve changed other, larger aspects of how we look at links and people didn’t notice that either, so perhaps that shouldn’t have been such a surprise. So we started to provide other guidance that PageRank sculpting isn’t the best use of time. When we added a help page to our documentation about nofollow, we said “a solid information architecture — intuitive navigation, user- and search-engine-friendly URLs, and so on — is likely to be a far more productive use of resources than focusing on crawl prioritization via nofollowed links.” In a recent webmaster video, I said “a better, more effective form of PageRank sculpting is choosing (for example) which things to link to from your home page.” At Google I/O, during a site review session I said it even more explicitly: “My short answer is no. In general, whenever you’re linking around within your site: don’t use nofollow. Just go ahead and link to whatever stuff.” But at SMX Advanced 2009, someone asked the question directly and it seemed like a good opportunity to clarify this point. Again, it’s not something that most site owners need to know or worry about, but I wanted to let the power-SEOs know.
Two weeks ago I changed a few internal anchor text links for a HTML SELECT Label in order to save some space in the menu bar. Today, when I saw in Google the Cache (text-version) page of my site I realized that all the links in the HTML SELECT Label cannot be followed. So I understand that Googlebot doesn’t follow this links and obviously there’s no inbound ‘link juice’. Is that so?
It is important for a firm to reach out to consumers and create a two-way communication model, as digital marketing allows consumers to give back feed back to the firm on a community based site or straight directly to the firm via email.[24] Firms should seek this long term communication relationship by using multiple forms of channels and using promotional strategies related to their target consumer as well as word-of mouth marketing.[24]

The PageRank algorithm outputs a probability distribution used to represent the likelihood that a person randomly clicking on links will arrive at any particular page. PageRank can be calculated for collections of documents of any size. It is assumed in several research papers that the distribution is evenly divided among all documents in the collection at the beginning of the computational process. The PageRank computations require several passes, called “iterations”, through the collection to adjust approximate PageRank values to more closely reflect the theoretical true value.
The truth? Today, rising above the noise and achieving any semblance of visibility has become a monumental undertaking. While we might prevail at searching, we fail at being found. How are we supposed to get notice while swimming in a sea of misinformation and disinformation? We've become immersed in this guru gauntlet where one expert after another is attempting to teach us how we can get the proverbial word out about our businesses and achieve visibility to drive more leads and sales, but we all still seem to be lost.
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