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outbound link: a link on my website to a page on someone elses's website that I have put there because I am a nice guy and doing my part for the good of all internet users
internal link: a link from one webpage on my site to another page on my site that I have placed there to help my grateful visitors.
I must beg to differ slightly with the earlier replies.
Inbound and Outbound can be seen as page specific, while Internal and External are site specific.
Inbound links - Links that can bring a user to a page.
Outbound links - Links that can lead a user off a page.
Internal Links - Links between pages on the same site.
External Links - Links related to outside sites.
All of that being said, unless otherwise specified, "inbound links" are generally referring to inbound links from external sites, and "outbound links" are most often describing links to external sites.
edited for grammar and clarity
[edited by: Macguru at 3:09 pm (utc) on Dec. 17, 2002]
Generally the term is used in the context of doing a "backward link check" at one of the search engines using their link: command.
A backward link check at the search engines will usually yield a combination of both internal and external inbound links for the specific page entered.