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.
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.