Google’s Matt Cutts released a video explaining why Google no longer has that 100-links-per-page Webmaster Guideline. That guideline was dropped well before 2008, but webmasters still think having over 100 links on a page may lead to a penalty.
Google’s Matt Cutts – We Dropped The 100 Links Per Page Guideline but We May Take Action If It Is Too Spammy.
For example Sites like Techmeme likely has thousands of links on the home page, but they are not penalized by Google.
Google said if a site looks spammy and has way too many links on a single page, Google reserves the right to take action on the site.
Matt also explained that your Page Rank is divided by the number of links on a page. So if page A links to page B, C and D that Page Rank is divided into three. If you have hundreds of links, it is divided by hundreds, and so forth.
Here is Matt’s video:
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