People often get confused about the importance of both outbound and backlinks, so Matt Cutts from Google has created a short video that makes it clear how the Google algorithm (and the now not-so-important PageRank) work with links on your own website.
Here’s the video:
Way back when, Google did not want more than 100 links on a page. This was not just because of link farms and spammy sites, but because of a technical issue within Google that limited the amount of content indexed on a page to 101Kb, meaning that frequently a long list of links simply was not indexed.
However, now many people will have pages on their websites that do include a considerable number of links.Imagine, for instance, a page on your site that lists search engine optimisation and internet marketing tools, grouped by category. With the proliferation of tools for those wishing to conduct internet marketing campaigns, this could easily contain more than a hundred recommended websites in twenty categories for keywords, SEO, social media, traffic analysis, conversion tools, and so on. Thus, creating a really useful resource to the huge variety of software and applications that an avid internet marketer might wish for.
Luckily, if you stick to a single theme on a page, and only include the best of links, Google will no longer penalise you for passing the 100 link limit. Think carefully though whether you have created a useful, SEO and user-friendly resource, or a high bounce page for your visitors and the search engine bots.