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Originally Posted by StephenR
I recommend you keep your outgoing links to a minimum and when possible keep them linked to your network of sites. Not too many network links though as the search engines frown upon this practice.
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I used to think that too. But there is also a growing group of people who are throwing caution to the wind and doing A LOT of linking out. So a search for "Link Karma" and "Blog Tipping" in google to get a better idea about how they are doing that.