Many SEO firms are stuck on a bad premise ‘ linking out is a bad thing.
1. Outgoing links are a drain on their hard fought Google’s PageRank (a version of link popularity) development campaigns
2. Outgoing links reduces rank position in search engines, and
3. Outgoing links can also give away valuable visitors to other sites
Although these firms are successful, their original premise is flawed. Google (and other search engines) value outgoing links particular if the ‘linked to’ page is of the same topic as the page being linked. More
importantly, your visitors will benefit from such links. If these outgoing links are to an authority site (a trusted source of information e.g. NASA website for the topic of space) you stand an enormous chance of gaining far more than you lose. Your PageRank passes through all the naming link conventions (categories) and if you have a listing that PageRank you passed to the authority site comes back to you. Additionally, many of the sites along the link upstream also link to hubs for the same reason (more quality information) and your PageRank that followed these paths filter through all the naming link conventions (categories) and again if you have a listing that PageRank you passed comes back to you.
Additionally, any site that was not even in that authority link upstream yet has a listing in DMOZ.org receives some of your passed PageRank from those authorities linking to DMOZ.org. If these sites have, a link to you that PageRank you passed comes back to you. Not forgetting all other major hubs, both general all encompassing directories and specialty topics oriented ones, if any of these authorities sites link to these directories and you are also listed, and/or sites linking to you are listed again your PageRank is passed back to you. In my opening comments, ‘many SEO firms are stuck on a bad premise’. I submit that few, if any, have taken the time to investigate all ‘link paths’ to ensure there was nothing ‘downstream’ that sends their PageRank drain back.
The essence of the World Wide Web is ‘connecting’ and the more you ‘actually connect to’ the more you get in return. The simplicity of the web is “getting linked” and forward thinkers make meaningful linkage, but if you only look at your immediate adjacent returns ‘ you are not seeing the whole picture.