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Internal Links
An internal link is a hyperlink which points to the same website or document where it is located. This can be either to another section of the page or to another page on the website or domain.
Efficient internal linking is vital to search engine optimisation to ensure that all pages of a website are properly indexed. Internal links also help determine the relevancy of website pages to search engines; for example, an internal link with the anchor text "software development" is more useful for ranking (and usability) purposes than an anchor that simply says "click here".
The number of internal hyperlinks and their format needs to be handled with care - too many links trying to include every search term being targeted can be deemed spammy and either have a negligible or negative effect on search engine rankings.
Internal links also help determine how PageRank (effectively page importance) is passed through a website. Pages that are more important to the business should probably have a direct link from the homepage, whereas pages that are several clicks away from the homepage tend to have a much lower PageRank, reflecting their position further down the hierarchy than category pages.
As a rule, contextual links in the main website content are more valuable for search engine ranking purposes than those placed in the footer. Webmasters should also consider using absolute rather than relative links, i.e. http://www.xyz.com/xyz.htm rather than xyz.htm.
A link to another website or document is known as an external or outbound link.
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