Search engine optimization companies use the nofollow attribute to control the Page Rank within a website. This was not the original intention of the no-follow tag. Nofollow is designed to control the flow of Page Rank from one website to another. We find that a nofollow used for an internal link works like a nofollow used for external hyper-link.
Pages such as “About Us”, “Terms of Service”, “Contact Us”, and “Privacy” pages are not important enough to earn Page Rank, and could have nofollow on internal links pointing to them.
Several Google employees (including Matt Cutts) have urged Webmasters not to focus on manipulating internal PageRank. Google employee Adam Lasnik has advised webmasters that there are better ways (e.g. click hierarchy) than nofollow to “create a bit of Page Rank”, but that it is available and is “we’re not going to frown upon it”.
For more information on nofollow “Best Practices” contact Denver SEO
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