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Ignore Google, build pages for your users. Whatever you would consider to be the maximum number of links your users would find useful is probably not far off Google's opinion either.
If you site has 700 or more pages, does it really make sense to put all 700 links on a one page site map? Or would it be easier to navigate with a directory structure?
Google will crawl 101 KB of every page. Google will find every link in the first 101 KB of a much larger page. If you can cram hundreds of links in a really clean coded 101 KB html page, then Google will find them all. The limit is determined by the page size rather than the number of links.
I could have worded things more clearly. Maybe a better way to say it is that Google will find and use all the links in the first 101 KB of any given page. If you can squeeze hundreds of them in that first 101 KB, they're all found.
ADDED: Polarisman, I believe that the 101 KB limit is definite. There are posts from GG kicking around that indicate it to be true and it's stated somewhere on the Google site as well. I personally have pages larger than 101 KB that are clipped at that.
ADDED AGAIN: Ok, I found a GG post on that:
[webmasterworld.com...]
MSG #11
If you site has 700 or more pages, does it really make sense to put all 700 links on a one page site map? Or would it be easier to navigate with a directory structure?
That's a good question. IMHO a site map is a single resource that you use when you have problems navigating the site. Once you start splitting the site map up into sub-maps, you re-introduce navigation - and the purpose of the site map is lost.
[webmasterworld.com...]
So is the 101 KB limit a cache limit only? How large a page will Google crawl? I know that I have a 450 KB page that was a list of cave names, in alphabetical order, that was clipped right at 101 KB wrt serps and cache. I later chopped it into 6 smaller pages so that the entire list would appear in the serps, (which worked fine).
There were only links at the top of that 450 KB page, so I couldn't tell if Google had crawled right through looking for links.
ADDED: I just remembered... I saw the original 450 KB file, (left it up along with the chopped up ones), get crawled in the last few weeks. Have to dig into the logs and see how much the bot took.