What Is Link Equity?
Link equity is the measure of ranking value that one webpage passes to another via a hyperlink. It is closely related to the concept of PageRank, Google's original algorithm for determining the importance of a webpage based on the quantity and quality of links pointing to it. When a high-authority page links to your page through a dofollow link, it transfers a portion of its accumulated equity to your page, which can improve your page's position in search results.
Several factors determine how much link equity a link passes. The authority of the linking page matters significantly: a link from a page that itself has many high-quality backlinks passes more equity than a link from a new or sparsely linked page. The total number of outbound links on the linking page also plays a role, as the equity available to pass is divided equally among all outbound dofollow links. A page with 3 outbound links passes roughly three times as much equity per link as a page with 9 outbound links, all else being equal.
The rel attribute of the link determines whether equity flows at all. Standard dofollow links pass equity. Links marked rel="noopener", rel="sponsored", or rel="ugc" are treated by Google as hints and typically do not pass PageRank. The relevance and placement of the link within the page also influence its value: a contextual link embedded within the main body copy of a topically relevant article carries more weight than a link in a footer or sidebar, because Google's algorithms evaluate context when assessing the quality of a link signal.
For South African businesses competing in local and national search, link equity accumulation is one of the clearest paths to sustainable ranking improvement. Unlike paid advertising, where visibility stops the moment budget runs out, link equity compounds over time. Pages that consistently earn high-quality backlinks from reputable South African and international sources build a durable ranking foundation.
Link Equity In Practice
The scenario below is an illustrative example, not a Juicy Designs client result. It shows the kind of effect that link equity management typically produces, so treat it as indicative rather than measured.
Imagine a Cape Town property agency that publishes a detailed annual report on residential property price trends in the Western Cape. Suppose the report earns dofollow backlinks from property portals, news outlets such as Property24 and Daily Maverick, and several municipal planning publications. Each of these linking pages would carry meaningful authority, so the report page would accumulate substantial link equity over several months.
The agency's SEO team could then build internal links from the high-equity report page to three target pages: a "buy property Cape Town" service page, a "property valuations Cape Town" landing page, and a "property agents Atlantic Seaboard" page. By funnelling some of the report's accumulated equity through these internal links, the team could plausibly improve the ranking signals for all three commercial pages without acquiring any additional external backlinks.
This illustrates link equity management in practice. The key insight is that equity flows through your site the same way it flows from external sources: through dofollow links, proportionally distributed among all outbound links on the page. A sound internal linking strategy ensures that the equity your content earns from external sources reaches the pages you most want to rank, rather than pooling on informational pages that are not commercially important.
Common ways South African sites lose link equity include: using nofollow on internal navigation links, publishing multiple thin pages targeting the same keyword (which splits equity across several URLs instead of concentrating it on one), allowing broken internal links to accumulate, and having external sites link to non-canonical URLs such as HTTP versions or pages without trailing slashes that redirect rather than pass equity directly.
How link equity flows
Link equity, sometimes called link juice, is the ranking signal a link passes from one page to another. When an authoritative, relevant page links to yours, it passes some of its trust and authority, helping your page rank; this is why backlinks from strong, relevant sites are so valuable. Equity flows through internal links too, which is how you channel authority from your strongest pages to the ones you want to rank. The amount passed depends on the linking page's own authority and relevance, and is shared among its outbound links. Understanding this flow explains both why earning links from strong pages matters and why internal linking is a controllable ranking lever.
Preserving and directing link equity
Link equity can be wasted or misdirected, so preserving it is part of technical SEO. When URLs change, a 301 redirect passes most of the old page's equity to the new one, while a broken link or a 404 loses it entirely, which is why migrations need careful redirect mapping. Redirect chains dilute equity and should be kept to single hops. Internally, linking from high-authority pages to important target pages directs equity where you want it, while orphan pages receive none. Nofollow and certain rel attributes signal that a link should not pass equity, useful for paid or untrusted links. Managing all this ensures the authority a site earns actually reaches the pages meant to rank.
FAQ
What is the difference between link equity and domain authority?
Link equity refers to the value passed through individual links, while domain authority is a third-party metric (created by Moz) that estimates the overall ranking strength of an entire domain based on the sum of its link equity. Google does not use domain authority as a ranking signal, but it does use link equity signals derived from PageRank. Think of domain authority as a summary score, and link equity as the individual transactions that feed into it.
Does buying links help build link equity?
Buying links violates Google's Webmaster Guidelines. Google requires that paid links use rel=sponsored to prevent passing PageRank. If bought links are detected, the site purchasing them risks a manual penalty or algorithmic devaluation. Sustainable link equity comes from earning links through quality content, digital PR, and genuine partnerships, not purchases.
What is link equity dilution?
The spreading of a page's ranking signal across its many outbound links, so each receives a smaller share, and the loss of equity through redirect chains or broken links. Keeping redirects to single hops and linking purposefully helps concentrate equity where it matters.
Do nofollow links pass link equity?
Traditionally nofollow signalled that a link should not pass equity, and it is still used for paid or untrusted links. Google now treats nofollow as a hint rather than a strict rule, but nofollow links generally pass little or no ranking signal, which is why dofollow editorial links are the ones that most influence rankings.