Link equity

In the context of digital marketing and SEO, the concept of link equity, also known as link juice, describes the value that a link and particularly a backlink can transfer from one page to another in terms of authority and ranking in search engines and is based on the idea that links are not all equal in terms of value and authority. However, this is an unofficial concept in the SEO world and has never been confirmed or outright denied by Google.

The word equity comes from the financial term, which in the English language means the net asset value or ownership stake that an individual has in an entity, such as the value of a house less the outstanding mortgage; in the financial context, equity represents the value that an investor actually owns, and is a fundamental concept in economics and finance.

In the digital context, the term has metaphorical value and refers to the accumulated value that can be “invested” for future benefits.

Link equity is influenced by various factors, including the reputation of the site providing the link, the relevance of the linked content, the domain authority, and the position of the link on the page. To simplify, according to SEO theories a link from an authoritative and relevant website can transfer more “equity” than a link from a lesser-known or low-quality site.

Link equity is a key component of the algorithm of Google and other search engines, which use it to assess the quality and importance of a web page.