An external link generally refers to a link that either points to a location away from the website it originates from (another domain name) or it originates from another website altogether. It differs from an ‘internal’ link that originates from and points to a location within the same website, like a web page within the site or a specific location on a particular web page within the site.
External links that point to your website can be a great benefit when part of a structured search engine optimization campaign. Links that point to your web pages from strategically selected external websites known to attract your target audience groups may help to enhance your website ranking. When your web pages are visited by a user who clicks on this type of external link it is regarded as a “vote” that your website contains content valued by the user interested in the particular type of information.
Sometimes website owners exchange external links, known as ‘link exchange,’ in order to ensure there are reputable links pointing to their website content from relevant and high ranking outside sources. This is a perfectly acceptable practice.