1. Matt says that the classical PageRank papers and discussions which you can find and read on Internet freely are too old algorithms and don’t show the complication of current real Google calculations.

   These include :Sergey Brin PageRank Paper of Stanford , Google PageRank Matrix
   

2. Classical Idealized Understanding of PageRank :Please, notice that it is the old PageRank algorithm. The fact that Google once was working on this principle some years ago.According to following chart, all outgoing links are counted as equal including paid links. So, if a page has a value of 100 like on the top-left with 2 outgoing links, all would get equal value as 50.
3. Decay Factor : It is invented by Google owners to prevent making people constructing link chains. Imagine you have 10 pages on different 10 blogs, one for each and you put links like a chain and finally putting a link from the last item from the chain to the first. It would end up with an infinite PageRank increase. (See chart below).To prevent this, in every step link loses 10 – 15% of its value in the chain and decays in several steps.So, we can conclude that you should avoid such link chains.
4. Old NoFollow Algorithm : It was the latest understanding of NoFollow and PageRank before Matt Cutts’ explanation on new algorithm two days ago. Google’s aim was to prevent people buying links to increase Page Rank artificially and keeping search engine results clean from spam and affiliate links. According to this, bloggers were encouraged to use rel=nofollow tag in links where they link to an affiliate website or paid link to not to pass PR value.For example,You have a page with PR value of 100 and you link to 10 other pages. 5 of them are nofollowed. According to this algorithm, you would share 100 points amongst remaining 5 links. So, it is exactly 20 points for each followed. Nofollowed links don’t get any points.  So, it was logical to nofollow all unimportant links. So, even if you had a page with 100 nofollow links, you did not lose any points to remaining ones. Please note that we didn’t include decay factor here because the exact details are unknown to the public.
5. Brand new Google PageRank Algorithm : Here comes Matts’ shocking explanation.Let’s take the same example. A page with PR value of 100, 10 total links, 5 of them are nofollowed. As usual 5 nofollowed links don’t get any points. But, you lose these nofollowed points and remaining points are divided amongst following links. So, say bye bye to 50 points at first hand. Then remaining links get each 10 points. It means that, if you have a page with lots of links whether they are nofollowed or not, you lose!

   The direct implication of this behaviour that a page with less links are better. We can naturally ask this. Should I close the comments at all because they will eat my rankings? There is no clear answer from Matt yet about it. I will inform you about incoming feedbacks from him.

6. Using NoFollow on Privacy Policy, About Us pages etc : Matt clearly says in comments that we should not use nofollow on any of internal pages including these. Shock answer to many SEO fans.
7. Using NoFollow on Amazon Affiliate links : I didn’t answer still a clear answer on this eventhough, there are much questions. We will keep on asking I actually apply half of these links with nofollow to keep looking them natural.
8. Using NoFollow on Paid Links : Yeah, it continues to be valid. NoFollow your paid links and even better do not lose time and energy to write sponsored reviews at all. Developing a really SEO powered niche website is better in the long run like Best iPhone Cases
9. Using NoFollow on Feeds : Matt suggests using nofollow on feeds because it is another environment and doesn’t affect how your feeds will be found. He does for its own blog like this.
10. And let’s finish my article with a funny linkbaiting video from SeoFastStart about latest shiny PR changes : Here is Google Operation Bendover Have a nice profitable make money online and affiliate marketing day !

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