Out-pointing Links having the target term. Good or Bad?

[AjiNIMC]

I was using a tool from one of the top 3 SEO companies. They pointed out that target term in outgoing links is not good.

In order words if I am optimizing for "blue widgets" the links with anchor text "blue widgets FAQ" or "Blue widget quote" etc is not good. I felt that this is good (logically) as my website have more pages about "blue widgets".

I asked them the reason, he said,

If www.example.com is the page that you want to rank well for the keyword "blue widgets", you really should not link away from that page with that keyword in the anchor text. You would be passing link juice away from the page you want to rank most for that term.

Your take on it.

Regards,
Aji Issac

[tedster]

In our Google Forum Charter [webmasterworld.com] near the bottom it says:

SEO is a fluid profession. Techniques and tactics are always changing, and absolute rules are in short supply. There are only educated opinions - and it's common for opinions to run counter to each another.

That SEO company is entitled to their opinion. I've never noticed any such effect, and in fact I've used the targeted keywords in outbound links and achieved very good rankings. However, I would probably not use the exact keyword in the anchor text if I were linking to a page that ranked above my page for that particular query.

I think the power of anchor text as an on-page relevance factor is often overlooked.

[AjiNIMC]

I would probably not use the exact keyword in the anchor text

This I agree as well. I have always refrained from doing this.

It is quite logical, I am on a page A for a keyword and you are saying (through anchor text) there is another page B that explains this keyword, so better is to rank the other page B for this keyword instead of Page A.

I was with the opinion that keywords (with other words) in anchor text has always been of good help (from experience, I can strongly support it, and from logic I can debate for it too). Example "blue widget facts" "For Blue widget discussion visit xyz" and so on.

[tedster]

I'm on your wavelength, Aji.

If the page you are linking out to offers a type of on-theme information that you cannot easily offer on your own site, then certianly link, but include a descriptor for "type" in the anchor text -- in addition to the keyword. If you can provide that type of information on your site, well you probably should do that rather than linking out.

I have the feeling that this particular advice may be offered more from a theoretical position or a subjective impression - rather than from solidly tested data.