After attending SMX Advanced (or listening in), then reading Matt’s post about no-following, many SEOs, both beginning and advanced, are running around like chicken’s with their heads cut off, scrambling to decide what to do.
The more we pin Matt down on no-follow, the more confusing things become. If you were to read Matt’s post and overreact, you might remove all your no-follows including on blog comments, turning your site into an over-crawled (spiders visiting areas they shouldn’t) and over-spammed site (users dropping tons of links in comments).
Or, if you are a bit more savvy, you might start blocking comments on your blog, iframing your footer links site-wide, or dissallowing linking on all UGC. Also, you can check out this article on Updated Google My Business Ranking Framework from Web20 Ranker.
The key with any exposed change is to wait until the dust settles and SEOs test & share their results. If you have been using no-follows appropriately, you shouldn’t have much reason to change them now. Matt says these changes have been in place for a year, but I know for some borderline abusers of pagerank sculpting, the more noticable changes took place the past couple months.
External linking is where the greatest mistakes will be made. I would recommend against assuming Matt’s advice to stop using no-follow applies to external links as he appears to be speaking mostly about internal linking practices. I’ve asked him to clarify his stance on external linking because there are a lot of reasons why Google would prefer to heed your external no-follow instructions.
What should you do? For now, I recommend sitting tight.