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Should I leave the purchased website with it's existing Hosting company (and server and IP)?
It would be easier if I put the purchased website on my existing server and hosting company but I am afraid Google looks at the IP. I plan on linking the purchased website (PR7) to my existing city guides (they are related). I want google to count the full PR7 link. Will similar IP address water down the link?
So you have to pay a separate nominal hosting fee...a different IP number from a valued PR7 relevant site .. pointing in to you IP's is definitely a good thing...but be careful and conservative with how you link in...and don't link back out...
But I have also switch servers in the past without ill affect. The concern is that I will be moving a highly rated site (PR7) that has been around for 8 years And I will be moving it to the same Host (IP Block) as my existing websites (PR6), that it will be linking to.
The concern is linking to my existing site and what Google will think about close neighbors linking to each other. I still have in the back of my mind the concern of moving an 8 year old PR7 website too.
I believe you will always be better off, in the long run, having diverse IP ranges pointing into your site(s)..especially if they are stable and well established in Google's memory banks...
The other piece you are undoubtedly considering is the actual traffic that will occur from the links themselves...if you now own a site that has been up and running for 8 years and is very familiar with the target demographics and well established in the SERPs than you should see a solid traffic flow that is hightly relevant to your site(s)...
that's not very smart, to put it politely. Are you trying to save, what, a few dollars a month? If I were buying a PR site, I'd create a unique whois identity for it, all information different from anything I have up currently, I'd put it on a high end, 99.9% uptime hoster, also completely different IP range as any site I do. Then I'd start working on making the few dollars a month that hoster will cost me from the site, which is I assume why you bought it in the first place.