Why Smart Business Websites Use External Links (and How to Do It Well)

October 29, 2025

When done right, external links are far more than just citations. They help build trust, provide valuable context, improve the user journey, and even signal credibility to Google.

If you’ve ever hesitated to link out for fear of “losing traffic,” this guide will show you why the opposite is often true, and how to use outbound links strategically on your website or blog.

Let’s break it down simply, and without the SEO jargon.

What Is an External Link?

An external link, also known as an outbound link, is a hyperlink on your website that sends users to another site.

For example, if you mention a statistic or reference a study and link to its original source, that’s an external link.

In contrast, internal links keep users on your site by connecting them to other pages you own (like your services, blog posts, or contact page).

Think of external links as helpful handshakes:
You’re connecting your readers to reliable information that adds context and clarity, even if you didn’t create it yourself.

Why External Links Matter

Here’s why smart websites use outbound links as part of their content strategy:

1. They Build Credibility

Referencing authoritative sources, like government websites, universities, or industry experts, backs up your claims and shows you’re not just making things up. It positions you as informed and trustworthy.

2. They Improve SEO Relevance

Search engines look at the quality of your outbound links as a signal of content quality. Linking to respected sources can help your page appear more credible in the eyes of Google.

3. They Enhance the User Experience

Sometimes your audience wants more detail than you can provide in a single post. A relevant, well-placed link gives them the option to explore without losing trust in your content.

4. They Encourage Backlinks in Return

When you link to other valuable sites, there’s a chance they notice, and may link back to you in the future, which is a big win for SEO.

Best Practices for Linking Out Smartly

Want to get the benefits without overdoing it? Here’s how to link out effectively:

Best PracticeWhy It Matters
Link to authoritative, high-quality sitesAdds trust and signals to search engines that your content is legit
Use descriptive anchor textHelps users (and Google) understand what they’ll find on the other side
Keep the number of links reasonableAvoid overwhelming your reader—only link when it genuinely adds value
Set links to open in a new tabKeeps your own site open while offering additional content
Audit links regularlyOutdated or broken links harm user trust and SEO performance

What to Avoid When Using External Links

Just because external linking is good doesn’t mean more is always better. Here’s what not to do:

  • Linking just for the sake of it: Random or irrelevant links add no value and make content feel spammy.
  • Overloading a page with outbound links: It distracts users and can pull attention away from your core message.
  • Linking to unreliable or low-quality sources: If the site isn’t trustworthy, linking to it can harm your credibility.
  • Forgetting to check your links: Dead or redirected links can hurt your SEO and frustrate visitors.

Linking Out Isn’t Weak—It’s Smart Strategy

If you’re serious about creating content that informs, builds trust, and ranks well, external linking should be part of your playbook.

Think of it this way: smart businesses don’t gatekeep information, they guide their audience to the best answers, whether those answers live on their website or not.

In doing so, you become the go-to source people trust, and trust is what turns a visitor into a client.

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