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Looked at from that direction, blogs are one of the last places you can obtain an honest link. It generally holds true to the original web excitement over hyperlinks where a document is studded with references to other documents illuminating the current text you are consuming. It's from this original conception of the what the web could be that PageRank was conceived from.
What are blogs linking to and what can you produce to fit that general trend?
I once had a link from a PR8 page, a "What's New" page on a UK university site. For a few glorious weeks my site was PR7, then it crashed to earth. The PR it has now is a lot more stable because it's based on a broad variety of little links, not one heavyweight.
If you're in the early stages of building a site and you have many links coming from blogs it's likely you'll see rankings swings positively correlated with when links move off the front page.
These links are mostly all I have for my e comm site. They help in pushing my site to the no 1 to 3 position for most key phrases relevant to my site. I may mention, that the site is not in a very competitive niche though..
I ' wud me more than happy to get a link in a reputed blog posts, for my sites, than getting them from general websites and directories (that are without content generally).
bilalseo (bilal qayyum)
I try and ignore Page Rank as much as possible because it's unreliable. I mean, you want to factor in page rank and relevancy, but which is more important? If PR was more important, it'd be fine to link to any page with a high PR. But that obviously doesn't work, so relevancy becomes the most important factor. Also, if you just look at PR you may be missing some great sites that simply have a low PR at the moment. Wouldn't you rather have a link on a PR 2 site now, and six months later find that PR has gone up to 6? You're already an established link there and you've shown the search engines that via the time your link has been there.
Blog links are useful if the content is relevant and if the page is highly trafficked. Again, however, consider the referrals you get from those blogs. Are the users spending a good amount of time on your site? If they're just bouncing on and off, then that link is just muddling up your statistics and making your bounce rate go through the roof.