Link equity remains one of the most foundational concepts in SEO, yet it’s also one of the most misunderstood. In simple terms, link equity is the value or authority that flows from one page to another through hyperlinks. This “value” helps search engines evaluate which pages are more authoritative, more relevant, and ultimately more deserving of higher rankings.
In my recent video, I walked through what link equity really means, why it matters, and how SEOs and site owners can use it strategically. This article expands on that discussion, providing a clear breakdown of how link equity works and how you can use it to strengthen your website’s overall visibility.
What Is Link Equity?
Link equity refers to the ranking value that a page passes to other pages through hyperlinks. When one page links to another, some percentage of its authority flows through that link. Think of it like water flowing through pipes: each link is a channel that distributes value.
Several factors influence how much equity a link passes, including:
- The authority of the linking page
- The relevance between the linking and linked pages
- The number of links on the linking page
- Whether the link is internal or external
- Whether the link is followed or nofollowed
Links from authoritative, well-trusted pages pass more value than links from lower-quality pages but all followed links have the potential to carry some amount of equity.
Why Link Equity Matters for SEO
Search engines rely on link patterns to understand which content deserves to rank. When a highly authoritative page links to another page, it acts like a vote of confidence. Multiply that across dozens or hundreds of links, and the result is a powerful ranking signal.
But link equity doesn’t just matter for backlinks. Internal links the links within your own site determine how equity circulates across your content. If Google sees a strong internal linking structure that clearly prioritizes your most important pages, those pages are likely to perform better in the search results.
In short:
- External links bring authority into your site.
- Internal links distribute that authority where it needs to go.
How Link Equity Flows Through a Website
Imagine Page A has significant authority and links to Page B and Page C. Because the link value is divided among outgoing links, each linked page receives a portion of Page A’s equity. If Page B and Page C also link to other pages, the authority continues to flow in a cascading manner throughout the site.
This is an oversimplified version of the original PageRank algorithm but the general idea still applies today.
Some key principles:
1. Each link shares a portion of the page’s authority.
If a page has many links, each one passes less equity. This is why tightly focused internal linking can be more effective than linking excessively or randomly.
2. Links create pathways of significance.
Pages that receive more internal links tend to be perceived as more important. This is one reason category pages, product pages, and pillar content often rank well: they live at the center of many internal pathways.
3. Link equity compounds.
If a page receives external backlinks and then links to other internal pages, it can amplify the authority of your entire site structure.
Practical Ways to Optimize Link Equity
Here are some actionable strategies for making the most of the link equity your site earns:
Audit Your Internal Links
Identify your most authoritative pages often those with the strongest backlink profiles and ensure they link to your highest-priority content.
Reduce Unnecessary Outgoing Links
Too many links dilute equity. Keep your navigation and page templates tight and purposeful.
Use Clear, Descriptive Anchor Text
Anchor text helps search engines understand context. Use it naturally, but be descriptive enough to signal relevance.
Strengthen Key Pages with Supporting Content
Cluster-based architectures (pillar pages linking to topic clusters) help funnel equity into the pages you most want to rank.
Clean Up Orphaned Pages
Pages that receive no internal links receive no internal equity either making them nearly invisible to search engines.
A Simple Way to Visualize Link Equity
In the video, I walked through an example showing how link equity divides when a page includes multiple outbound links. If Page A has three outbound links, each linked page receives roughly one-third of that page’s equity. While modern algorithms are more nuanced, the general principle remains: the more links you have on a page, the less equity each link passes.
This is why both internal and external linking strategies should be intentional rather than accidental.
Link equity is one of those SEO concepts that becomes more intuitive the more you work with it. It influences rankings, shapes site performance, and helps search engines navigate your content. By understanding how authority flows and designing your site architecture around that flow, you can significantly improve both individual page rankings and your site’s overall SEO strength.
If you’re interested in seeing a visual walkthrough, be sure to watch the full video on YouTube, and feel free to reach out with questions or comments.