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It's not good. If you can, avoid it. However, we do see some websites that rank high and the links pointing outward work just fine. StudiosAlexander.com, all iFrame. Their homepage and individual pages all rank high. The problem is, they may not rank high enough AND the way the frames are displayed when you click into their website is not very professional. It's just the frame without the body of the website. Not good. Otherwise, they are on page one of Google for some very impressive keywords (using the iframe).