What is the difference between having out going links to external sites and internal links within the site? I have seen some sites saying they only have a few # of external links eventhough they have internal links.

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The more outgoing links you have the more the Page Rank get's divided. An index page with 2 outgoing links is going to give more PR to each link than the same page would with 20 outgoing links.

There are two important tools for all link exchangers.

Reviewing incoming link requests
First - you need a search engine simulator, or your own spider. When I review incoming link request email, I now double check all potential link partners to ensure that the link can be crawled. This has saved me a lot of time by filtering out cheaters, but I've also benefitted from echanging links with new sites that have been built correctly. While other webmasters shy away because of a low PR - I'm one of the first to gain big PR boost when the site is indexed!



Finding quality links
Second - you need a means to measure the incoming and outgoing links from a list of prospective link pages, keyword density and anchor text. When I'm looking for potential links, I have my software crawl the link pages of my competitors link partners. I review those with the best link ratios, and contact each one individually with a very costomized, hand-written link request email.

Get more details here;

Link Reputation

All the best

Doug

SEOKID what about outgoing links to another page on the same site? Is it the same as outgoing link to an external site?

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Nope, thats why you can have a links page that has resources1.htm and resources2.htm and so on, but the first page has 200 links on it and the lower level page still has equal PR as the first resources page. This is something new that I've been noticing in the last two updates. Don't worry if a page has 120 links internal, meaning going to other pages on the same domain. You won't gain a lot of PR from a page that is covered in outbound links, but, you will still get a backlink, I've seen pages that still provided links to the #168 link on the page and more. They just might take a little while longer to get spidered.

yep, all links help

I've seen people try to say only the first 100 count, but that's blatantly wrong

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SEOKID, above you wrote:
The more outgoing links you have the more the Page Rank get's divided. An index page with 2 outgoing links is going to give more PR to each link than the same page would with 20 outgoing links.

If my site links to two or twenty different sites. Does it affect the PR of my site?

Reason I ask, I use a huge database located on a different domain. (Parts Catalog) And link to it from my home page. Will having too many links to this database lower my pagerank?

If you have 10 links out... they all get about 1/10 of the PR.
If you have 20 links out... they get about 1/20 of the PR.
If you link out... the PR goes out...
So if you have 10 links out and 10 links to internal pages ---> 1/20
If you have 20 links out and 10 links to internal pages ----> 1/30
So your own pages will get each 1/20 in the 1st example and 1/30 for the second.

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