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Disclaimer: For all: this discussion does NOT deal with whether buying PR is "evil and a horrible sin", and any replies regarding this would be detrimental to the overall discussion... no purchase necessary, limited time offer ;)
If you had the choice to "buy" links with pagerank pointing to your new site, would you choose one PR8 link (with perfect anchor text for the keyword phrase) or 40 PR4/PR5 links (with reasonably good anchor text)? For purposes of simplicity, assume your link is the only outgoing link on those pages.
So, would only one link from a PR8 page to a new site's homepage be considered too suspicious by google's filters to give that new site a huge pagerank boost? Does google's filter "prefer" that you have at least a few other sites that link to you (as well as that sweet PR8) in order to get the huge pagerank boost from the PR8?
In conclusion, is one link with perfect anchor text from a PR8 to a very well optimized page for that specific keyword, enough to beat out multiple (let's say 40) links with satisfactory anchor text from pr4's pr5's to a very well optimized page for that specific keyword?
Sorry for the multiple questions, but I feel this will be a very interesting thread for many members.
If you get one external PR8 link to a page, you can make several hundred external PR5/6 pages on your own by creating other domains, so in terms of the initial question the external/internal issue is irrelevant.
So the second thing is unrelated to the initial question, but the anchor text weight difference between internal links and external ones is small, imo, if there is one at all. I believe that at worst it is so small that it isn't worth the bother to make a jillion mini-sites instead of one mega-site.
Then also, it would be goofball search engine-ing if Google weighted a link from and external site you owned more highly than an internal domain link you own. Everything we see about Google consistently tells us "a page is a page", and encouraging creating other domains rather than creating internal pages would be counter to Google's basic philosophy.
Large sites with only internal anchor text can compete just fine with niche sites that have a similar number of external/internal anchor text links. Again, there may be a small difference, but there isn't any point worrying about it. Make a site with sensible, user-friendly linking and name the links sensibly/usefully.
Having 40 PR5 links is only better than one PR8 link if you then slip into a coma and don't do anything else. But any non-comatose person should make 40 PR6 links off the PR7 index page, and then make 40 PR5 pages off all those PR6 pages.
Exactly what i think :)
But a little brawback on this approach than getting 40 PR 5 links is this will take 2-3 months more as the PR has to propagate
On the internal/external issue, I think external links hold more value but internal are far from useless.
Been watching 1 site that dominates the SERP's in an industry pretty well. He's got a PR7 home page based on 1 PR8 & a dozen lesser links. But he's got nice anchor text links to about 300 internal pages in his hidden div navigation. I'm convinced his rankings are due in large part to the internal linking structure.
rmjvol