Michael Arrington reflects on the success of Technorati, and how they are an interesting case study for the power of links. He assumes that their tagging links have helped push them to the top of search engine results, as Google and the rest place a high value on links. However, this may turn out to be a story of caution, as the company’s traffic hinges on a type of link that Google doesn’t favor.
For traditional publishing companies, who are now venturing out onto the web, and defining their success in terms of traffic, this offers a scary scenario. Are these companies setup for such potentially huge swings in “circulation?”