Where link equity comes from

The concept goes back to the original PageRank algorithm (Brin and Page, 1998). The idea: a page is
important if other important pages link to it. The final rank is a recursive function over the link
graph of the entire web.

Google does not publish the formula behind modern PageRank, but the key principles hold:

  • Every page carries a certain amount of link equity
  • Outbound links divide that equity between all the links on the page
  • Pages with many links from authoritative sources accumulate more equity
  • That equity is what makes competitive queries winnable

How the distribution works

Page A (DR 70) links to pages B, C, D
→ each of B, C, D receives roughly 70 / 3 = ~23 notional units of equity

Page B links only to page E
→ E receives the whole ~23 units

Page C carries rel="nofollow" on its link to page F
→ F receives nothing; the equity on that link is effectively burned

Important: adding nofollow to a link does not redistribute its equity to the other links on
the page — the equity is simply not passed. That is why it is better not to link to an irrelevant
resource at all than to link to it with nofollow.

Managing link equity on an e-commerce site

Internal linking

Sensible internal linking is the free way to control how equity is distributed. The principles:

  • The homepage is usually the most authoritative page, so links from it are the most valuable
  • A blog with strong articles should link to categories and product pages
  • Breadcrumbs are a working mechanism for passing equity up the catalogue hierarchy

External links

Source type Value How to earn it
Editorial mentions in the press High PR campaigns, expert commentary
Links from reviews and comparisons High Work with bloggers and review platforms
Directories and aggregators Low Basic presence in Google Business Profile and local directories
Private blog networks and link markets Penalty risk Do not use

For e-commerce the most effective route to link equity is unique data — original research and
statistics on shopper behaviour — that other resources cite naturally.