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Originally Posted by Leigh
I think that it needs to be stressed here that it has a negative effect on PageRank and PR is just a small part of Google's algorithm.
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I think I explained that above, but thanks for stressing it
A negative effect on PageRank is a negative effect on rankings.
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Originally Posted by Leigh
It may have a positive effect on SERP ranking depending upon how relevant to your page content Google sees the link.
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Some people have put forward that idea, but I have never seen any evidence for it. I'm not saying that it doesn't happen. I'm saying that I'd like to see some evidence for it. If LocalRank ever comes into play, then linking out can definitely be used to make ranking gains.