Sharing same IP address as competitor - Pros & Cons?

[chichesterdesign]

Hey there!

I was wondering is there were any particular 'Pros or Cons' to sharing the same server IP address as a competitors website which links back?

Site 'A' = http://goo.gl/N1JUO // Stockists of Site 'B' brand products

Site 'B' = http://goo.gl/fU9hc // Links to all Stockists of it products with a follow link including site 'A'

It is desirable for site 'A' to rank above site 'B' to reduce the volume of visitors finding other stockists linked to from the stockists page of site 'B' when searching for site 'A' primary broadest keyword. However, site 'B' is one of site 'A' best in-bound links. So does it matter that site 'A' is sharing the same server IP address as site 'B'.

Also should site 'A' have only 'no-follow' links to site 'B'?

Look forward to your input fellow SEOMozers

Cheers!

Ben

[KaneJamison]

You want to avoid this. It makes the link less valuable because it looks like a site you own.

Both sites are on the same IP Address: 37.188.122.69

The important part is that they're both on the same C-Block - that's the technical way of saying that the third set of numbers is the same (122). You want to avoid that.

Regarding nofollow - I only use that for sites that I don't 'trust.' If there's a competitive site that I don't want to pass link value to, I try not to link to it at all.