Nofollow, dofollow links


I want to start a new blog and am learning as much as possible beforehand including SEO backlinking techniques. I've read that a blog or site can be mentioned without helping your rank when a nofollow HTML tag is included.. I think nofollow links are used when the owner isn't sure that you're trustworthy or just doesn't want to take a chance on a newbie. Do follow is the presumed standard and occurs automatically unless the owner adds the code for nofollow.

My question is what are the linking owner's consequences if they make a mistake by "dofollow" linking a new site that winds up being owned by a spammer or plagiarist? Does Google punish that owner by lowering their page rank? How do you find people who are willing to take a chance on your new blog?
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I reckon this is one of those topics where you'll find very differing views, some based on lack of knowledge, some based on blind panic.

Yes, there are situations where links should be "no-followed" but it isn't necessary for all links to be treated that way.

I found this article interesting.

In it, it links to what Matt Cutts of Google says himself about both kinds of links, do-follow and no-follow.

The Google article explains that there are several instances where it could harm your site/blog, if you do-follow certain types of links. These include Paid links, or links to untrusted content.

The difficulty with paid links, of course, is that if someone is paying you to place a link to their blog on your blog, they don't do it simply for the advertising. They also hope to get some link juice from yours. And if you won't follow the link, they won't pay to have it on your blog.
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