What are nofollow links | How it effects search engine optimization

Whenever you creates a link with rel="nofollow” attribute it becomes nofollow link. As the name suggest this link is not followed by google crawler. This means whenever a page with any link is crawled by google bot has nofollow attribute than the reputation of the linked landing page is not effected by the page rank of the page with that link.

If a site with a high pagerank links to you, Google increases your authority, and in turn, your pagerank. Those links can be links directly to something you wrote or links left in comments (since most commenting forms allow you to include your URL). But if that site with the higher pagerank is using the NoFollow tag than it will not count to your website/blog.

How to use nofollow links for SEO

Every site has links that are less important or link to pages that don’t change (e.g., a site map or your About Me page). Use the NoFollow tag for those links.

If you are creating a link to page which has lower page rank than yours, here nofollow links should be used. In addition to low priority links, Google suggests using the NoFollow tag for untrusted content and paid links.
Same should be done in opposite case, when you are creating backlink on page with lower page rank than yours website/blog, than it should be with nofollow attribute so that it only count to your traffic and doesn't derepute your site.

If you have text link ads on your site, make sure they’re tagged as NoFollow.

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