If you’re involved in search engine optimization (SEO), you’ve likely heard the term “link equity” thrown around.
But what exactly is link equity? Why does it matter? And how can you utilize it to improve your website’s search rankings?
That’s what we’ll cover in this post. We’ll start with the basics – defining link equity and discussing why it’s important. Then we’ll explore the factors that influence link equity and the top questions around it.
Let’s dive in!
What is Link Equity?
Link equity refers to the ranking power a page or website gains from external links directing to it.
In simple terms:
- More quality links to a website or specific page = more link equity = better rankings in search results.
Why does this happen?
Search engines, especially Google, interpret external links as “votes” of quality and legitimacy. So the more links pointing to you, the more “backing” and therefore authority you have in search algorithms.
The Premise is Simple:
- External links = Votes of confidence
- More quality votes = More credibility and authority
- More credibility and authority = Better search rankings
Now you know what link equity is in broad form. But there’s more depth to uncover in exactly how search engines evaluate link equity.
How Do Search Engines Evaluate Link Equity?
Link equity relies on both the quantity and quality of external links.
It’s not just the number of links, but certain characteristics and factors around those links.
Google and other search engines look at many link factors, including:
Link Quality Factors:
- Relevance – Links from closely related sites boost value more. e.g. links from marketing sites carry more weight for your marketing site.
- Authority – Links from authoritative sites with high trust and domain authority will pass more equity.
- Anchor Text – Exact match keywords in the anchor text of links add more specific value for those terms.
Link Quantity Factors:
- Total Links – The overall number of external sites linking back to you is key.
- Unique Domains – Links from more unique domains boost authority more than many from the same site(s).
- Quality Distribution – Having links from an array of quality sites creates fuller, balanced equity across pages.
In short: It’s both the amount and characteristics of links that matter.
Now, do be aware Google uses many more factors to evaluate overall link equity and a website’s authority. But the metrics above give you an introductory sense.
On that note, let’s look at some of the key components that comprise overall equity next…
The Main Components and Types of Link Equity
Two main components make up a website or webpage’s overall link equity profile:
1. Site-Wide Equity
Site-wide equity refers to ranking power passed across an entire domain via external links pointing to inner pages, the homepage, or the root domain overall.
Think of it like a “shared credit” system across your site. Page-specific equity DOES matter, but a baseline level applies domain-wide from general links.
For example, a link to your Contact page may lend some value to any other page on your site, despite not linking directly.
2. Page-Specific Equity
Specific equity refers to ranking power gained by individual pages from direct external links pointing at them.
So if Page A on your site has seven external links, Page A gains individual equity to rank better in related keywords and search terms.
The other main equity type is no-follow vs do-follow links:
- Dofollow – Passes full ranking power and influence to your site.
- Nofollow – Does NOT pass direct equity or value, due to a special tag added by publishers. Many site owners manually nofollow user-generated links as a best practice, for example.
Now that you know the components of link equity, let’s look at the top factors that influence it…
The Most Important Link-Building Factors Impacting Equity
While search engines evaluate many intricate details around links, there are a few core factors that typically have the BIGGEST influence on equity gained.
Backlink Location
- Where links are placed matters. Links higher up and more prominently placed in content pass more equity. e.g. a link in paragraph one boosts more vs buried at the bottom.
Anchor Text Variation
- Anchor text refers to the visible, clickable text in a link. Varied anchor text with your target keyword(s) intermixed lends more equity and looks more natural vs forced.
Authority of Linking Domains
- Links from reputable, long-standing sites with high authority have MUCH bigger influence. Think major publications, well-known blogs, educational sites, and industry pioneers. These “vote of confidence” links boost credibility.
Relevance Between Sites
- Links from topically relevant sites lend MUCH more weight since they show true connection and recognition. So for a marketing site, links from influencer marketing hubs add validity versus random niche sites.
Those are four extremely key factors to focus on. Next, let’s explore some common questions around links for more context…
Frequently Asked Questions About Link Equity
Let’s review answers to some top frequently asked questions around link equity and external links for better understanding:
Is link equity and backlinks the same thing?
Yes essentially! Backlinks create and pass link equity…so they are intrinsically connected. Building backlinks results in higher equity over time
Does MORE link equity directly equal higher Google rankings?
In most cases yes. But some nuance…site optimization, on-page factors, and authority also play key roles. So link equity alone doesn’t guarantee #1 positions if other factors are weak or underoptimized.
How many links per month are good for SEO?
There is no definitive “perfect number” per month across sites. It varies greatly based on the competitiveness of the keywords targeted, industry, site size, current link profile, and other dynamics. That said 15-25+ quality relevant links per month is a general solid goal for gradual growth.
Can you have too many backlinks?
More is generally better. However, one potential excess risk is many low-quality, irrelevant links being seen as “overoptimization” which can possibly devalue your links’ influence. So quality beats quantity when possible.
Is 5,000 backlinks good?
Possibly yes, but it depends. 5K links can be great if from strong domains with varied anchors. 5K poor links will do much less. So focus on QUALITY sources when sourcing and allowing links.
Can I “transfer” link equity between pages?
Not directly. However, you can redirect pages or change internal linking structures to essentially “pass on” equity after earned to other pages in need. Just be careful not to redirect high-value pages as that equity will be lost if not repurposed properly via site architecture planning.
Hopefully, those questions and answers provided extra helpful context!
Now, let’s quickly summarize just why link equity matters so much…
Why Link Equity Is Important For SEO
We’ve covered what it IS and what influences it already. But understanding why it’s so vital can keep you focused on link-building in your strategy.
In essence, link equity is key for these reasons:
- Adds ranking power allowing pages to surface for more keywords
- Boosts authority and trust in the eyes of Google and users
- Contributes greatly to overall SEO strength which lifts rankings
- Allows “borrowing” of relevance and credibility from quality domains linking in
- Compounds gradually over time creating a foundation that’s harder for competitors to displace
Simply put: Using link equity and intentional backlink-building techniques are musts for sustaining high search visibility.
It CAN feel overwhelming at first. But just focus on slow and steady link wins drawing from this education. Over 12-24 months you’ll see tangible jumps in your website’s authority and search domination!
Okay, wrapping up this guide on understanding link equity…
Key Takeaways – Link Equity 101
We’ve covered a ton in this introductory guide! Here are the vital key takeaways on deciphering link equity:
- Link equity transfers SEO power and authority from external links pointing to your site.
- The quantity AND quality of links are evaluated for overall equity calculations.
- Site-wide and page-specific equity are the two macro types that comprise a site’s profile.
- Placements, anchor text variation, source authority, and relevance boost equity the most.
- Direct rankings boosts are why properly utilizing link equity is so important for reach and traffic gains long term.
Hopefully, this baseline education gives you the knowledge needed to level up your own link-building efforts over time. Thanks so much for reading!
This is just one part of an ongoing series educational series diving deep into link building and SEO. So stay tuned and subscribe for more soon!
