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if your pages appear to know what they are talking about and are citing other highly placed pages by linking to them ..you too will likely place higher ( eventually )..
plus linking out is how the innerweb tubes are supposed to work ..
link hoarding is bad for you ..the art is in knowing how to keep the balance ..:)
BTW welcome to WebmasterWorld
So, do you you guys place links on every single page? Even if its a large site? Would it be wise to put the same links on every page (part of your template)?
No. You place links where they will be of use to your readers and you link to external sites which will be of use to your readers
So, say you have a review about the Ford Mondeo car, a link to the Ford company's page about that model of car would be very relevant, and probably useful to your readers. Google will certainly respect that link also. However, a link to the Coca-Cola company from the same article would probably be detrimental!
Google advises you to think "how will this help my readers?"
It's a simple concept, and worth keeping in mind.
Matt
[edited by: Matt_Probert at 2:16 pm (utc) on Nov. 17, 2006]
You have to understand your navigational funnel (where people come in, where they go once they come, where they leave, and how do they get to the "Thank you for your order" page. Understanding this is important to properly placing outbound links.
Even without studying your navigational funnel, if you sell widgets, you can write content on widget care (given you don't deal with this). If that page ranks well, you will get people looking for widget care coming to that page. This page should mention your newest line of widgets and tell everyone if they need to care for their widget then they can visit widgetcare dot com (and make that link open in a new window). This way, you link to high quality sites that COMPLEMENT your content and services, and develop your site in the SEs.
Not to mention, if widgetcare dot com likes the traffic you send them, you can strike and advertising deal with them.