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Google made Off-Page Ranking Factors famous with its patented PageRank algorithm but researchers had discussed using ideas such as link anchor text as far back as 1994. Off-page criteria is obtained from sources other than the internal website.
Probably the most important of these criteria today is the quantity of inbound links using anchor text containing your target keywords. These should come from pages covering similar topics, preferably from large, long established authority sites. In the case of Google the higher the PageRank the better. All other things being equal, a link from a PR6 site is worth around eight to ten times that of a PR5 site. Remember that Google uses all inbound-links in its ranking process, not just those shown by the 'backlinks' option of the Google toolbar. If the page has the luxury of many inbound-links then mixing target keywords to cover different queries is a good idea. Since Yahoo! acquired Overture and dumped the Google index it has published an index called WebRank. This is based on the number of incoming links to a site. It would seem likely that this is also a factor in their ranking process.[1]
Source: Catanich Internet Marketing
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