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Thus we can deduce two things, and correct me if I'm wrong (that's why I'm writing this post)...
#1 - Linking to other websites is best done on pages with a lot of links pointing to other pages on your own site so that the "piece of the PR pie" passed to the other site is small (all links on a page share a % of the total PR available to pass from that page).
#2 - Getting a link from a page with a PR of 2 can be more beneficial than getting a link from a page with PR 4 that has a ton of other links on it too (internal and/or external). Link directories and link pages generaly have a LOT of links on the page and so you get a smaller piece of the PR pie. I don't know about you but I'd rather get 10% of PR 2 link instead of 4% of a PR 4 link.
The number of links on a page matter even though most are oblivious to that fact... right?
[edited by: JS_Harris at 10:57 am (utc) on April 24, 2009]
But I don't think trust, authority or relevancy gets split so arithmetically.
And as for #1, very true, but a more effective (and widely deployable) tool would be to use nofollow. No leakage. However, one man's leak is another mans gain. How would you like it if all your IBLs from good sites suddenly got NF's by PR-obsessed webmasters?
As for nofollow, I took a site of mine with 400 or so pages, spent a week devising the best possible internal link structure for my purposes and then implemented it. The result was to then watch as 90% of the traffic dried up overnight and take 2 months to crawl back to normal. It did continue rising nicely ever since but it was like wiping the slate clean.
I wonder if I wiped any page authority away too, some pages came back 2-3 spots lower than they were before (but with more traffic?) /shrug.
As for nofollow, I took a site of mine with 400 or so pages, spent a week devising the best possible internal link structure for my purposes and then implemented it. The result was to then watch as 90% of the traffic dried up overnight...
i did the same for a site with about 40 pages, and traffic spiked just for the page to which i funneled most of the pr, once it started to rank competitively. as long as it helps the page you are targeting, i am thinking you've met your objective.