TheBigK - 7:47 pm on Dec 1, 2012 (gmt 0)

Quick Update:

I've been researching this topic of 'Internal Bad Link' causing traffic drop and have discovered some interesting stuff.

There are webmasters who've cited their experiences confirming that large number of bad urls pointing to non-existing locations on the same domain has resulted into drop in rankings. Some even mention that fixing the bad links recovered their traffic to levels slightly more than before the drop.

The general advise on the Internet is that '404 errors don't cause traffic drop. period'. Now all 404s aren't of the same nature. If another domain creates incorrect link to your website - it's not your fault. But what if your own domain has bad links to self?

I'd be interested in reading the experiences of webmasters who've been through similar situation.