This is important for all of those of you who stay up-to-date on SEO. If you’re asking “what’s ‘nofollow’?” then you can just ignore this whole thread - it’s not relevant to you.
Google just made a rather huge change which you should be aware of… Put simply, if you had 10 equally important links on a page and had nofollow on 5 of them it used to be that each link got 1/5th of the link juice assigned to that page. Now, each link gets 1/10th of the link juice and the other half of the link juice just gets lost.
Bottom line, don’t use nofollow too widely - it’s now better to build your unimportant links with Javascript or put them in Flash where Google will have problems seeing them. That said, be careful with doing links in tricky ways. If I did that on my blog, all the people who read the blog with feed readers would have problems when they click on the links.
Here are some articles on the change…
http://www.seomoz.org/blog/google-maybe-changes-how-the-pagerank-algorithm-handles-nofollow
http://searchengineland.com/google-loses-backwards-compatibility-on-paid-link-blocking-pagerank-sculpting-20408
As soon as I read those articles I went and checked my blogroll of sponsors and saw that I still had in place a script to not do the blogroll if the user agent was a spider. I’m glad I kept it that way and didn’t use nofollow otherwise I’d be a bit screwed right now.
This is actually a big deal for us. We’re all about paid links and Google hates paid links. So dealing with these issues is important for those of us who are trying to develop sites with some authority.