An outbound link (also known as an external link) is a hyperlink that directs users to a URL outside of your website. An outbound link from one website is considered an inbound link (or backlink) for the website that is being linked to.
Outbound links are commonly used for various reasons, including providing resources with additional and deeper information, referencing sources of information, and referencing products, particularly in affiliate marketing.
Moreover, outbound links pass the so-called “link equity” to the linked web pages. They function as “votes” for search engines like Google. The more websites link to your content via outbound links, the more authority it gains. Pages with higher link authority tend to rank higher in Google’s search results.