Google PageRank
Google PageRank (PR) was devised by co-founder Larry Page (hence PageRank) to measure the importance of a webpage - the higher the PageRank, the more important a page is perceived to be. You can see a webpage's PR by installing Google Toolbar in your browser. Notice that I use "webpage" rather than "website" because every individual page is given a PageRank.

Google toolbar showing a website's PageRank in a Firefox browser
Google PageRank and SEO
A webpage's PR directly affects its rankings on Google's search results, i.e. a page with a higher PR will rank higher if all else remain the same. Hence, increasing a website's Google PageRank is high in the agenda of any search engine optimization campaign.
What's In the Number?
PageRank has a scale of 0 to 10, and a new website can typically achieve PR3 to PR4 after a PageRank update. A good website can easily achieve PR5 to PR6, while a better established one has PR7 to PR8. PR9 and PR10 websites are uncommon, except in giants like Microsoft (PR9), SlashDot (PR9) and Apple (PR10).
How Is PageRank Determined?
Nobody knows exactly how a PageRank is calculated - it is an even bigger secret than Coke's super-secret recipe! Generally, the more inbound links you have, the higher your PageRank. It helps if the links come from pages with high PR and of a similar category as your website. Every inbound link counts as a vote, and the system is based on how academics would reference a reliable source in the appendix of their thesis.
Why Is My Website Showing PR0?
The PageRank on Google's Toolbar is typically updated every 3 to 4 months. Hence, if yours is a new website, you won't see a change until the next update. HOWEVER, PageRanks are actually updated on a frequent basis internally and reflected in Google's search results. These changes are not included in the toolbar because Google wants webmasters to focus more on building content instead of thinking how to manipulate the PageRank.
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