Google does not rank links from all websites equally! Google gives more weight to links from some websites than from others. Google calls this score "Page Rank", and Google assigns every website on the Internet their own Page Rank. The PR score is from 0 to 10. Google reserves the highest ranks for what they deem the most important sites on the Web. For example Yahoo has a PR of 10, and the Open Directory Project has a PR of 9. Most other web directories on the web have ranks of 7 and higher. Google considers these links among the most highly valued when calculating your link popularity, and thus these websites have the highest "Page Rank". Getting other websites with high PR to link to you is critical to improving your own site's PR. Ultimately for a commercial website a PR of 6 is about as good as you could ever hope to get, with a PR of at least 5 being your minimum goal. When you achieve a PR of 5 you will find that many other websites begin to request link trades from you more often, because they value a link from you. The bottom line is that your own PR affects a lot of your overall marketing and site promotion. If and when you achieve a PR of 5 or 6, your search engine rankings will go up and you will be able to more easily trade links.
Other websites vary widely in terms of how much Google values them with respect to link popularity. Vertical portals are typically more highly valued than other simple websites. Free hosted sites, are ranked lower than paid hosted sites. Free-For-All link pages receive zero credit. Link Farms (like www.linkstoyou.com, and www.linkme.com) who link to you will actually penalize your link popularity, because they are a blatant attempt to hijack Google's link popularity algorithms.
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