One of the most common misconceptions by bloggers is that linking out will reduce your page rank. There is no truth in this fact. It is the right of a webmaster to link out to blogs or websites that he finds worthy. There are examples of many blogs and websites in the internet that link out to many sites and yet have a PR 7 or PR 6.
This myth initially started when Google started hitting hard on blogs that linked out to blacklisted and poor websites (Adult, Malware, Blackhat SEO etc.). These sites were called link farms, since, they simply linked out to a huge number of websites without any relation to their own niche. Neither did the website linking out have any quality content. So these linkfarms began to get blacklisted in Google’s index.
Another controversy that promoted this myth was when Google started punishing those who sold static html links on their blogs. This helped the publisher gain money and advertiser generate link juice for his website. Google did not like this manipulation and screwed the Page-rank of many good blogger. Although, most of them did get back their pagerank at the next Google PR update.
But when bloggers like us who create content that is good there shoudl be absolutely no fear of linking out. In fact, linking out is very important to create a give and take community. And to provide more information to readers.
Have you any idea how many blogs and websites pro-bloggers like Daniel Scocco and Darren Rowse have linked out? Thousands of them. So don’t worry about linking out. Spread link love and let your website grow.