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I had two sites that were linked in a very similar way, not done for any marketing/SEO reason just to offer a different product, these sites on the last update lost all backward links and PR which was 6 now is 0 I can only put this down to the linking.
I have dropped google a line, quite a few times with no response asking if the linking was the problem with no reply.
So I can't definitely say but I’m pretty sure
Would your sprockets site have links only from the widgets site?
Also whether the link will be placed from all of your pages of widgets site to the sprockets home page or will there be some pages which do not have the outbound link?
I think if it is linked from all of your pages and the sprocket site has other good incoming links from other sites, it shouldn't be a problem.
tigger :
What would you identify as the problem issue in your case - was it that the other site you linked to didn't have any other incoming links or that you gave out so many links from one site to the other, that it became a problem?
In tigger's case, the problem was the link back. Am I right, tigger?
My linking scheme was very similar to yours (I need to point foreigners who arrive to the original domain to the new English one). More than 500 links going one way, only 1 link pointing back.
Not much of other links, the second domain is quite new.
No problem in Google (so far). Maybe Google can measure "intentions"? :) If you link for ranking they hit you hard, if you link for helping your users to find what they need, they let you be?;)
what if all 500 internal links go a single page on the widgets site..and this single page then gives a text link to the sprockets site...
this is definitely a problem. What I am saying is that a reciprocal link (whether it is to the same page or different) is the problem. If sprocket domain doesn't link to the widget domain, then its safer IMHO
The optimized pages showed up in pretty good positions in Google...
Do you think this is a safe way building traffic to the SPONSOR site(s)? Could it be safer if the links are php redirects?