Link Equity Explained: Internal Links vs External Links Strategies

Link Equity Explained: Internal Links vs External Links Strategies

In the constantly changing world of search engine optimization (SEO), one theory has remained consistent over the years that links matter. But not all links are created equal. Behind every hyperlink lies a transfer of authority, trust, and relevance. This is commonly referred to as link equity, or as old-school SEOs call it, “link juice.”

Whether you’re building a powerful internal linking structure or earning backlinks from high-authority domains, understanding how link equity flows is one of the most important steps to ranking higher in search results.

In this blog, we’ll break down:

  • What link equity means in modern SEO
  • The difference between internal vs external link strategies
  • How search engines like Google treat link value in 2025
  • Necessary steps to maximize link equity for your website

Let T-Ranks help you optimize your link equity distribution with smart and updated SEO strategies.

What is Link Equity?

What is Link Equity Explained in 2025

Link equity (also called link juice or SEO equity) refers to the way search engines pass value from one webpage to another through hyperlinks. Just think of link equity as “SEO currency.” When one page links to another, it votes for its relevance and credibility.

This concept comes from Google’s PageRank algorithm, which mainly uses links as a primary element for ranking pages. Pages with more quality backlinks were considered more trustworthy and thus ranked higher.

How Does Link Equity Work in SEO?

When a page links to another, search engines evaluate multiple signals to decide how much link juice (SEO equity) flows. Below, you can get some key points that link equity works in SEO. 

10-Factors-That-Influence-Link-Equity

1. Authority of the Linking Page

High-authority domains with strong backlink profiles transfer more SEO equity. For example, a backlink from BBC.com is far more valuable than one from a small personal blog. This happens because authority acts like SEO trust currency.  Also, Google views references from authoritative sources as endorsements.

2. Relevance of the Linking Page

Relevance ensures the link isn’t just popular, but contextually meaningful. Here are some key factors:

  • A link from a website in the same niche carries stronger link equity.
  • Contextual backlinks placed within topically related content pass more SEO juice.
  • Relevant links guide users logically, reinforcing search intent.
  • A relatively authoritative but relevant site often beats a high-DA irrelevant one.
  • Relevance strengthens EEAT signals, making backlinks more future-proof.

3. Anchor Text Optimization

Anchor text impacts how Google explains the target page’s topic. Branded, partial match, and natural anchors are ideal. Over-optimized anchors like “buy cheap backlinks” can cause penalties.

4. Placement on the Page

Editorial links within the body content are stronger than links hidden in footers, sidebars, or boilerplate templates. Placement signals intent and editorial control, which Google favors.

5. Indexation of the Linking Page

If a linking page isn’t indexed in Google, it can’t pass link equity. 

Deindexed or blocked pages = zero SEO juice.

6. Link Attribute 

The link attribute plays a critical role in how equity flows:

  • Dofollow links pass full link equity.
  • Nofollow, UGC, and Sponsored links normally pass little or no equity. Though they may provide indirect benefits like traffic, branding, and discoverability.

7. Traffic & Engagement of the Linking Page

Links from high-traffic pages contain more SEO value. Because they can bring referral traffic in addition to ranking factors. Google increasingly factors user engagement as a trust indicator. This is making traffic a secondary signal of link quality.

8. Diversity of Linking Domains

One backlink from 100 unique sites is better than 100 backlinks from the same domain. Link equity flows best when your backlink profile shows domain diversity. It suggests organic and broad recognition across the web.

9. Freshness of the Link

Links on newly updated content, such as new blog posts, news mentions, etc. are considered more relevant than links buried in outdated or static pages. Google’s “freshness” algorithm prioritizes links that remain active and regularly updated. 

10. Outbound Link Profile of the Linking Page

If the page linking to you links out to hundreds of other sites, the equity gets thin. A page that only links to a few high-quality resources passes concentrated link juice. Quality always beats quantity in outbound linking.

Not all links pass equal equity, which is why understanding link value distribution is key to SEO success.

Types of Links

Types of Links in SEO

Before diving into strategies, let’s clarify the different kinds of links:

  • Internal links – Links between pages of the same domain.
  • External backlinks – Links from other websites pointing to your site.
  • Dofollow links – Pass SEO juice and authority.
  • Nofollow links – Don’t officially pass link equity, but may provide traffic or indirect signals.
  • Redirected links – Links that pass equity through 301 redirects.
  • Image or multimedia links – Alt text provides as anchor text for SEO equity.

Each type plays a unique and important role in shaping the SEO flow to our website. 

Internal Link Equity Distribution

Internal linking is the art of strategically connecting your pages to ensure SEO juice flows where it’s needed most.

Let’s know about a well-structured internal linking strategy: 

  • Helps Google discover and index pages faster
  • Ensures link juice is distributed logically
  • Improve visibility of important money pages
  • Decrease orphan pages (pages with no incoming links)

Use Descriptive, Relevant Anchors

Anchor text informs Google about the target page’s content. Instead of irrelevant text like “click here”, use clear, keyword-focused phrases, for example, “backlink audit guide”. This not only improves SEO signals but also guides users with context.

Links inside body text hold more weight than those in sidebars or footers. Placing links in a relevant paragraph passes stronger link juice because search engines see them as editorially valuable.

Build a Topical Map

Your site should follow a pyramid-like structure—homepage → category → subpage.
This ensures link equity flows downward efficiently, making it easier for Google to understand topical relationships. A flat, messy structure weakens authority distribution.

Leverage Authority Pages

Pages with strong external backlinks work as equity hubs. Linking from these high-authority pages to less-visible content passes significant ranking power.

Support Fresh Content Early

New pages often struggle to rank because Google hasn’t discovered or prioritized them yet.
By linking to them instantly from older, authoritative posts, you quicken crawling and indexing. This jumpstarts their ability to compete in SERPs. Find all relevant pages from the search results.

Important pages should never be buried five clicks deep. Generally, core service or product pages are no more than 2–3 clicks from the homepage.
Simplistic depth improves crawl efficiency. It also ensures equity isn’t diluted across too many layers.

Update Orphan Pages

An orphan page has no internal links pointing to it, meaning it’s invisible to crawlers and users alike. Every valuable page should be connected within your site’s linking structure. Do regular audits to identify issues and fix them accordingly.

Navigational links (menus, footers) establish your website’s structure, but contextual links within articles push topical authority.
A mix of both ensures strong crawlability and user journeys. Think of navigation as your map and contextual links as shortcuts.

Broken or redirected internal links waste SEO flow and hurt user experience. Too many redirect chains weaken link equity, while 404s pass no value at all.

Distribute Equity Strategically

Every page doesn’t need equal equity. Focus on revenue-driving or pillar content. Make sure these pages get the strongest internal links. By doing this, you align SEO flow with business goals. It will maximize both rankings and conversions.
Request an internal linking audit from T-Ranks to unlock hidden SEO potential.

Common Mistakes in Internal Linking

  • Broken Links – Directing users to non-existent (404) or deleted pages wastes link equity and frustrates visitors.
  • Excessive Links on a Page – Overloading content with hundreds of links makes navigation confusing and lowers SEO value.
  • Redirect Chains & Loops – Multiple or circular redirects slow crawling, drain crawl budget, and block proper equity transfer.
  • Temporary Redirects Misuse – Using 302 redirects instead of permanent ones prevents equity from passing effectively.
  • Overuse of Permanent Redirects – Failing to update old links that point to 301/308 redirects reduces crawl efficiency.
  • Nofollow on Internal Links – Adding rel=”nofollow” to internal links prevents authority from flowing where it’s needed.
  • Orphan Pages – Pages with no internal links are invisible to both users and crawlers, blocking them from ranking.
  • Underlinked Pages – Content with only one or very few internal references signals low importance to search engines.
  • Excessive Crawl Depth – Pages buried more than three clicks deep from the homepage receive less visibility and equity.
  • Poor Anchor Text Choices – Keyword stuffing, vague or unnecessary terms like “click here,” or missing anchors confuse users and crawlers.
  • Irrelevant Links – Linking to unrelated topics disrupts user flow and sends mixed signals about topical relevance.

Link Equity and PageRank in SEO

Back in 1998, PageRank was Google’s core ranking algorithm. It measured link popularity and distributed equity across the web. While Google has since updated its algorithms, PageRank concepts remain embedded in modern SEO.

Here’s how it works:

  • Every page has a “PageRank score.”
  • When it links out, it divides its equity across outgoing links.
  • More quality inbound links = more authority retained.

Today, the link juice concept has evolved with semantic SEO and topical authority, but the flow of equity remains vital.

External Link Equity

External backlinks are the lifeblood of SEO authority. Unlike internal links, which redistribute your own juice, external links bring natural equity from other domains.

What Makes a Backlink Pass Strong Equity?

  • High Domain Authority (DA/DR) of the source site
  • Topical relevance to your content
  • Editorial placement (inside the content, not sidebar links)
  • Diverse sources across multiple domains
  • Dofollow attribute (as nofollow doesn’t pass juice directly)

External vs Internal Link Equity: Key Difference

FactorInternal LinksExternal Links
Primary FunctionRedistribute existing SEO flow across your own pagesBring in fresh SEO juice (authority) from other domains
ControlFully controlled by your site structure & strategyDepend on third-party sites & publishers
SEO BenefitImproves crawlability, indexation, and topical clusteringBoosts domain authority, credibility, and trust signals
Equity FlowCirculates link equity internally, ensuring no page is isolatedIntroduces new link equity into the ecosystem
Anchor Text Control100% customizable – you decide the exact anchor textLimited control – the publisher often chooses the anchor text
Topical RelevanceHelps search engines understand site architecture & content silosBuilds relevance & authority within your niche/industry
Placement PowerContextual in-content links pass the most valueEditorial placements on high-DA/DR domains pass the most value
Crawl Depth ImpactReduces crawl depth by linking deeper pagesNo direct impact, but can boost page discovery if cited widely
ExampleWikipedia’s internal linking structure – every page connects to relevant subpagesA Forbes backlink mentioning your brand or resource
LongevityLong-term, it stays active as long as your site existsCan be lost if the publisher removes or updates the link
ScalabilityEasy to scale by updating site structure & content clustersHarder to scale, requires outreach, PR, or content syndication
Risk FactorLow risk (errors = crawl inefficiency, fixable internally)Higher risk (toxic or irrelevant backlinks can harm SEO)
Equity MeasurementBest tracked via internal linking audits & crawl analysisMeasured via DA, DR, Trust Flow, and referring domains
Strategic RoleGuides link equity flow to conversion pages, service pages, or new contentFuels domain authority & off-page reputation growth


Together, internal + external links form a balanced SEO equity strategy.

Link Equity in 2025: What’s Changed?

SEO in 2025 is more semantic, AI-driven, and topical than ever before. Here’s what’s new:

  • Topical authority matters more than raw link counts.
  • Semantic signals (context of links) outweigh pure DA/DR.
  • AI-driven search engines evaluate user intent and content quality alongside link equity.
  • Nofollow, UGC, and Sponsored attributes are treated as hints, not ignored.

SEO Myth:  Link equity ≠ Domain Authority. DA is a third-party metric. Google uses a far more complex system.

How to Measure Link Equity Effectively

Measuring link juice isn’t an exact science. But you can get various tools that can help:

  • Ahrefs – DR, URL Rating, backlink analysis
  • Moz – DA, Spam Score, Link Explorer
  • SEMrush – Authority Score, backlink audits
  • Majestic – Trust Flow, Citation Flow

These are indicators, not Google’s actual metrics.

Strategies to Maximize Link Equity

Maximizing link equity is about ensuring that both internal and external links work together to build authority, improve crawlability, and strengthen your rankings.

how-to-maximize-link-equity-strategy



Here’s the step-by-step checklist:

Step 1: Audit Your Current Links

  • Why it matters: You can’t improve what you can’t measure. Auditing helps you identify where link juice flows strongly and where it leaks.
  • What to do:
    • Use tools like Ahrefs, SEMrush, or Screaming Frog to run internal link audits.
    • Check external backlinks with metrics like Domain Rating (DR), Trust Flow, and Spam Score.
    • Identify broken links, orphan pages, and toxic backlinks.
  • Outcome: A clear baseline of which links help your SEO equity and which harm it.

Step 2: Strengthen Internal Structure

  • Why it matters: Internal links distribute SEO juice throughout your site. It also ensures no page is left behind.
  • What to do:
    • Create topic clusters & pillar pages, such as one broad article that links to detailed cluster articles.
    • Use contextual, keyword-rich anchors. But always avoid keyword stuffing.
    • Ensure high-authority pages (those with strong backlinks) pass equity to your most important conversion/service pages.
  • Outcome: Your site becomes a well-connected hub that Google can crawl and rank effectively.

Step 3: Earn High-Value External Links

  • Why it matters: Backlinks from authoritative domains bring in fresh link equity that strengthens your domain authority.
  • What to do:
    • Run Digital PR campaigns like press mentions, industry reports, and expert quotes.
    • Leverage HARO to get cited in high-DR publications.
    • Acquire guest posts on niche sites.
    • Acquire niche edits (adding your link into relevant, existing content).
  • Outcome: A consistent flow of external equity from trusted websites.

Step 4: Remove or Disavow Toxic Links

  • Why it matters: Bad links can diminish your SEO juice and even trigger Google penalties.
  • What to do:
    • Check links with high spam scores, irrelevant anchors, or PBNs.
    • Use Google’s Disavow Tool for links you can’t manually remove.
    • Replace spammy links with high-quality contextual ones.
  • Outcome: You keep your link equity “clean,” ensuring authority flows without dilution.

Step 5: Optimize Link Placement

  • Why it matters: Links in main content areas pass more link juice than footer or sidebar links.
  • What to do: Prioritize placing links above the fold and inside contextual sentences.

Step 6: Update Old Content with Fresh Links

  • Why it matters: Older articles often gain backlinks but don’t pass equity to new content.
  • What to do: Revisit your top-performing blogs and add internal links to fresh, relevant pages.

Step 7: Use Strategic Anchor Text

  • Why it matters: Anchor text signals relevance. Poorly optimized anchors waste SEO flow.
  • What to do: Use a mix of exact-match, partial-match, and branded anchors to balance natural SEO signals.

Step 8: Prioritize Equity Flow to Money Pages

  • Why it matters: Not every page deserves equal equity. Your service pages, product pages, or high-value blogs should receive priority.
  • What to do: Map link equity flow using an internal linking pyramid (homepage → pillar → cluster → conversion page).

Step 9: Monitor & Re-Audit Regularly

  • Why it matters: SEO is dynamic; new links come, old ones break, and toxic links appear.
  • What to do: Run a monthly or quarterly audit, and adjust linking strategies based on performance.

By following these steps, your site won’t just have links; it will have a healthy equity flow, where every page contributes to rankings and authority.

What Determines Link Equity?

Factors that determine SEO juice value:

  • Domain/page authority
  • Link placement (content > footer)
  • Anchor text
  • Relevance of linking page
  • Dofollow status
  • Crawlability & indexation

Which Pages Should You Pass Link Equity To?

Page TypeWhy It MattersHow to Do It
Money Pages (Service/Product)Drive conversions and revenue – the ultimate business goal.Link from blogs, case studies, and high-traffic pages directly to these pages.
Cornerstone Content (Pillars/Guides)Build topical authority and act as hubs for internal linking.Use contextual anchors from related cluster content to strengthen them.
High-Converting Landing PagesGenerate leads, signups, or sales — where SEO juice translates into ROI.Route authority from top blogs, press mentions, and backlinks to these pages.
Fresh Content (New Blogs/Pages)Helps Google discover and rank new content faster, boosting visibility quickly.Add links from authoritative older posts and main category pages.



Case Studies: Link Equity in Action

One of the clients of our T-RANKS came with a new website that had weak backlinks, keyword cannibalization, and low homepage authority.

Strategy We Applied: 

  • Homepage boost: 15 strong backlinks to increase overall authority.
  • Direct linking: 5 backlinks targeted to a money page after merging duplicate content.
  • Anchor diversification: Balanced branded, topical, and natural anchors to avoid filters.
  • On-page fixes: Improved titles, keyword density, and content flow.

Results Client Gets

Link-Equity-Case-Study
  • Grew from near-zero traffic to ~2,500 monthly visits in 4 months.
  • Significant increase in ranked keywords.
  • Improved homepage equity lifted the entire site.
  • One page was briefly ranked in Google Discover.

From this work, we can say that smart link equity distribution, homepage authority + targeted backlinks + clean anchors, can rapidly scale visibility and traffic.

Final Thoughts

Link equity is one of the most important elements of SEO.

  • Internal links distribute SEO juice across your site.
  • External backlinks fuel your authority from outside.

Book a free consultation with T-Ranks to master your link equity strategy today.

Frequently Asked Questions (FAQS)

Does nofollow pass link equity?

No, nofollow links normally do not pass link equity. Because they tell search engines not to transfer authority to the linked page.

However, they can still provide indirect SEO benefits such as sending referral traffic, improving brand visibility, and diversifying your backlink profile. Google may also use nofollow links for discovery purposes, which means the linked page can still be crawled even if authority isn’t transferred.

How many internal links should a page have?

There is no fixed number of internal links that guarantees better rankings. Instead, focus on creating natural, contextual links that guide both users and search engines through your site. Internal links should:

  • Help users discover related content.
  • Support topic clusters and content silos.
  • Pass link equity to important pages (service pages, cornerstone content, landing pages).

    Too many links on one page can decrease equity and overwhelm users, while too few can leave pages orphaned. A balanced, purposeful structure works best.

Can link equity be transferred from subdomains?

Sometimes. Google often treats subdomains, for example, blog.example.com as separate entities from the main domain. In such cases, equity transfer between them is weaker.
However, when subdomains are tightly integrated with the root domain, some link equity may still flow. For maximum benefit, businesses typically consolidate content under subdirectories (example.com/blog/) rather than subdomains.

How do redirects affect link equity?

When it comes to redirects and link equity, 301 (permanent) redirects are generally the best option. Because they pass most of the link equity to the new URL, ensuring minimal loss of authority.

On the other hand, 302 and 307 (temporary) redirects are designed to signal that the move is only temporary. Additionally, redirect chains or loops can dilute link authority and negatively impact crawl efficiency, making it harder for search engines to properly index your pages. To preserve as much link equity as possible, it’s best to redirect directly to the final URL and avoid unnecessary hops in the redirection path.

Is link equity more important than content quality?

No, both are equally important. High-quality content attracts natural backlinks, which generate link equity. Without strong content, you won’t earn valuable backlinks. Without link equity, even the best content may remain invisible in search results. Think of content as the fuel and link equity as the engine that amplifies its reach. The most successful SEO strategies balance content depth, topical authority, and link equity distribution.

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