Many users have sister or friend sites that they maybe affiliate with. If you have a bunch of Out Bound Link leading out of your site those sites your site is affiliated with may not get the best value for the backlink. This can be compared with looking at a small list and a big list of names. In the small list all the names should get noticed while the larger list people will over look individual names. This is the same with the web crawlers only the sites do get recognized but the value of them are lowered. It like dividing the value or earning of the PR points gained for that backlink. If Google would give 10 points to 1 Out Bound Link then with 10 Out bound Link each site would only get 1 point. Keep in mind the Out Bound Link are only counted from the individually page the links display on.
Their is a solution to this problem! You can simply add a small code into the hyperlink code to show this link as a no follow link. While this link still may give traffic to the other site it will not count against the value of the sites that are followed.
Here is your basic hyperlink syntax which is a "follow" link by web browsers.
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