SEO Tip #106: Will Google Penalize Sites Which Only Link Using the No Follow Attribute?
Matt Cutts: This is a little bit of a “have you stopped beating your wife” type question in that there is an assumption baked in that is not necessarily true. Specifically you are saying, “many webmasters are linking only in No Follow and that’s killing the natural way of links.”
Whenever we look at the percentage of No Follow links across the web it’s actually a very, very small single digit
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