PageRank represents the importance of a web page. Google calculates that when one page links to another page, that page is effectively casting a vote for the other page. The more votes that are cast for a page, the more important the page becomes, hence the higher ranking for that page. However, not all links are counted by Google. For instance, they filter out links from known link farms. Some links can cause a site to be penalized by Google. They rightly figure that webmasters cannot control which sites link to their sites, but they can control which sites they link out to. For this reason, links into a site cannot harm the site, but links from a site can be harmful if they link to penalised sites. If a site has PR0, it is usually a penalty, and it would be unwise to link to it.
To check what you page rank is, navigate to PageRanking.
To calculate the PageRank for a page, all of its inbound links are taken into equation:
PR(A) = (1-d) + d(PR(t1)/C(t1) + … + PR(tn)/C(tn))
Where, ‘t1 – tn’ are pages linking to page A, ‘C’ is the number of outbound links that a page has and ‘d’ is a damping factor, usually set to 0.85.
We can think of it in a simpler way:-
a page’s PageRank = 0.15 + 0.85 * (a “share” of the PageRank of every page that links to it)
“share” = the linking page’s PageRank divided by the number of outbound links on the page.
A page “votes” an amount of PageRank onto each page that it links to. The amount of PageRank that it has to vote with is a little less than its own PageRank value (its own value * 0.85). This value is shared equally between all the pages that it links to.From this, we could conclude that a link from a page with PR4 and 5 outbound links is worth more than a link from a page with PR8 and 100 outbound links. Just remember to avoid links from link farms.
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