Link from a non existing page- is it bad?
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If Google Webmaster tools is showing a link to my site and when checked, that page doesn't exist (404 error), does that mean anything? Is it bad?
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If the page is indexed I would remove it. This should help: https://support.google.com/webmasters/bin/answer.py?hl=en&answer=59819
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Please don't take the above advice. I think the responder misunderstood your situation. If the externally linking page is broken, there's not much you can do. It will fall out of Google eventually.
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I support, there is nothing you need to worry about. Google will automatically take that link out once it recrawls the page.
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I agree with Edward here.
However for bonus SEO points if you 301 redirect the page where the external link is pointing to, to a relevant page, you'll take full advantage of that links power.
Iain - Reload Media
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That's a good idea Iain. Thanks! Though link is pointing to homepage so can't redirect.