There are 3 kinds of links, internal links, outbound and inbound links.
The internal links are the links within the same website, for example the navigation bar is internal links, HOME, ABOUT US etc, internal links are extremely important, first it guides the visitors and search engines through the different pages within the site and second depending on the way the linkage is made it defines to search engines the importance of each single page, example, if all pages have a link to “about us†the SE (search engines) consider the about us page relevant, so if you have a Google Page Rank of 5 for the home page, most probably the PR (page rank) of the about us page is also PR5.
One more thing about internal links, to improve the pages indexed pages by search engines it helps to improve by using links inside text, for example, you have a site about cats, and different pages for different species of cats and different pages for cat foods, if on the Persian cat’s page you link to a specific cat food, this will improve the importance of this page (the food page). So we recommend developing internal linkage.
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