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I wouldn't worry about this. To start, Google doesn't do this now, and in the unlikely event they ever do, *then* worry about it. I question whether Google will ever do this, primarily due to it being computationally intense, and also any such algo would likely have many false hits. Also, if Google ever did this I doubt they'd lower the rank of the linking page. It would make more sense just to assign less value to irrelevant links.
As for the original poster, since this link is off topic and irrelvant to users of your site, I can't see doing this unless you expect that it will somehow improve your site ranking. Only way I can see this likely happening is if you add a link to his site on your links page that already has 70 links, and one more makes little difference. And, if you could get this other site to link to you with just the right anchor text.
I also reject 4s and 5s with more than 100 links tho. Nothing I hate to see more than a page with 100 links with 5 different themes on one page. I don't care if it is a PR4 or 5. I would rather get a theme related PR 2 link with only 3 other links on the page. 100 links is nasty looking and violates Google's recommendations for webmasters.
I am of the opinion that when you give more, you get more. A pr4 with 100 links of 5 diff themes doesn't offer squat.
Can't help but agree; what's there to gain if they're off topic and less than PR3? If it's a site that looks like it's got good PR potential, that might be some justification, but it isn't really adding anything - especially terms of value to site visitors.
>>If linking page relevance isn't used in the algo now, it will be at some point in the future.
Highlight that with a yellow marker.
And we'll never need more than 640k to do it. :)
>>Also, if Google ever did this I doubt they'd lower the rank of the linking page. It would make more sense just to assign less value to irrelevant links.
Just wondering, do you say 3 just because they don't show as backlinks? I wouldn't worry if that is the case. If it's your typical informational site and your linking to related resources I'd have no problem linking to a PR2 or 1.
I'd bank on more informational sites being less SEO'd than e-com sites, sometimes a page has low PR because the internal linking is not as savvy as yours. If PR was the decider, I'd link to it anyway. If it's a strict recip, you;d have to wonder how "on topic" these recips are ;)
If someone offer you to trade links, there's obviously someone working with the site. You should look at the site's quality and what history it has. If it's a really good site, their pagerank can rise very fast. And when it is a pr 7 site, they wont bother trading links with you any more...