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- External links point from your website to another while backlinks are the reverse, pointing from other sites to yours.
- Linking out to relevant, trustworthy sources does not directly boost rankings, but it supports E-E-A-T signals Google uses to evaluate content quality.
- Dofollow links pass authority signals; nofollow links tell Google not to follow the link. Each has a specific use case.
- There is no universally correct number of external links per page; relevance matters more than quantity.
- A simple, consistent external linking strategy protects your site from link spam issues and improves reader trust.
What Are External Links (and How Are They Different from Backlinks)?
External links and backlinks describe the same type of link, just from opposite perspectives. An external link is a link on your website that points to a page on a different domain. A backlink is what that same link looks like from the receiving site’s point of view.
A practical example: if your business blog references an ABS report and links to it, that is an external link on your site. From ABS’s perspective, it is a backlink. The confusion between the two terms is common, but the distinction is straightforward once you anchor it to direction.
Both matter in SEO, but they work differently. Backlinks are a well-established ranking signal. External links serve a different purpose, covered in the next section.
Do External Links Actually Help Your SEO?
This is one of the most misunderstood topics in SEO, and the honest answer is: not directly.
Many site owners believe that linking out to high-authority websites will improve their own rankings. According to Semrush, Google’s John Mueller addressed this directly in August 2023, writing on Reddit: placing outbound links to popular websites changes nothing and called it a claim SEOs have hoped for “literally decades” without confirmation.
That said, external links are not pointless. Semrush notes that linking out to trusted sources, government sites, published research, industry bodies is demonstrates that you source information responsibly.
This supports Google’s E-E-A-T framework, which evaluates whether content shows Experience, Expertise, Authoritativeness, and Trustworthiness. E-E-A-T is not a direct ranking factor, but it influences how Google assesses overall content quality.
The practical takeaway: external links do not mechanically lift your rankings. Used well, they reinforce the credibility of your content, which matters to both readers and search engines.
Can External Links Hurt Your SEO?
Rarely, but there is one exception worth knowing.
Linking out to normal websites, even low-authority ones, is unlikely to cause any harm. The risk only materialises if you violate Google’s link spam guidelines. For example, participating in paid link schemes, linking to sites that exist solely to manipulate search results, or using external links in ways that look artificial.
For a standard small business website publishing genuine content, this is not a realistic concern. Link naturally to sources that support what you have written, and you will not run into problems.
Dofollow vs Nofollow Links Explained
What Is a Dofollow Link?
A dofollow link is the default link type. When you add a hyperlink in your content without any special attribute, it is dofollow. It signals to Google that you are comfortable endorsing the destination page and passing authority signals toward it.
What Is a Nofollow Link?
A nofollow link includes a rel=”nofollow” attribute in its HTML. It tells Google not to follow or pass signals through the link. Google treats nofollow as a hint, not a hard directive, but in most cases it will not crawl or credit the destination.
When Should You Use Nofollow?
Not every link warrants a full endorsement. Use nofollow in these situations:
| Scenario | Link Type |
| Citing a trusted research source or government site | Dofollow |
| Linking to an industry publication you reference regularly | Dofollow |
| Sponsored or paid content mentions | Nofollow |
| User-generated content (comments, forum posts) | Nofollow |
| Links to sites you reference but do not fully endorse | Nofollow |
For most blog articles citing reputable sources, dofollow is appropriate. Nofollow exists for situations where you are linking for context rather than recommendation.
How Many External Links Should You Include Per Page?
There is no official number from Google. The SEO community commonly cites a rough guideline of around two to five external links per 1,000 words, but this is not based on a published study, and Google has not confirmed any threshold.
What matters more than quantity is whether each link serves the reader. A 1,500-word article with three well-placed links to relevant, authoritative sources is more useful than the same article padded with ten links added to hit a number.
A simpler approach: link when citing a specific statistic, referencing a named study, or directing the reader somewhere that genuinely extends what your article covers. If you cannot answer “why does the reader need this link,” it probably does not need to be there.
Which Websites Should You Link To?
Prioritise Relevance Over Authority
A high domain authority score does not automatically make a site worth linking to. A link to a directly relevant niche source is more useful to the reader and more contextually meaningful to Google — than a link to a high-DA site that covers the topic loosely.
Avoid Linking to Direct Competitors
This is straightforward from a business perspective. There is no SEO benefit in sending your readers to a competing service provider, and doing so undermines the purpose of your own content.
Government, Academic, and Industry Sources
These are the strongest sources for external links. Australian government publications (ABS, ACCC, Digital Transformation Agency), peer-reviewed research, and established industry bodies all carry the kind of credibility that reinforces E-E-A-T.
When you cite data or statistics, linking directly to the original source is always better than linking to a blog that summarised it.
External Linking Strategy for Small Business Websites
A consistent approach to external links protects your site and improves reader experience. A few practical habits worth building:
Link only when it adds value for the reader. Every external link is an exit point from your page. Make sure the destination earns that click.
Open external links in a new tab. This keeps the reader on your site while still giving them access to the source. It is a basic UX practice that reduces unnecessary drop-off.
Audit your external links periodically. Sources go offline, articles get deleted, and URLs change. A broken external link in an article you published two years ago reflects poorly on your site’s quality. A quick audit every six to twelve months catches these issues before they accumulate.
Avoid link chains. If your external link redirects two or three times before reaching its destination, replace it with a direct URL. Redirect chains slow down page load and dilute whatever signal the link carries.
Are External Links Still Relevant in 2026?
The fundamentals have not changed. Linking to credible sources when you cite information has always been good practice in publishing, in journalism, and in web content. Google has not introduced any mechanism that penalises this behaviour, and there is no credible signal that it intends to.
What has shifted is Google’s ability to detect the difference between links placed for genuine reader benefit and links placed to game the algorithm.
Relevance and context carry more weight than raw quantity. A page that links thoughtfully to a handful of authoritative sources will consistently outperform a page that links aggressively to inflate the appearance of research.
For small business websites, the approach is simple: cite your sources, link to genuinely useful destinations, and do not overthink it.
Putting It Together
External links are a small but meaningful part of a well-optimised page. They do not directly move your rankings but they signal to Google, and to your readers, that your content is grounded in real sources and written with care.
Use them deliberately, keep them relevant, and audit them occasionally. That is the entirety of a sound external linking strategy for a small business website.
If you want help reviewing your site’s linking structure or building a content strategy that supports long-term organic growth, get in touch with the Rhasko Digital team.