Why you should never link to external images
Don’t link to images on someone else’s server.
These days I see way too many noobie webmasters and myspace owners embed images on their website by linking from an external site. For example person A wants to put an image of a car on his web page but links to it by calling it from someone else’s server, which it is hosted on. There are many downsides with this form of external linking and embedding, however, today I will be covering only two of the main reasons why you shouldn’t do this.
Loss of SEO power.
If you rely on search engine optimization to get traffic and visitors to your website, by uploading images to your server you can actually greatly benefit from google’s image search. When people search for images your uploaded picture has the possibility of being displayed, ergo getting clicks and driving traffic to your website. For more information regarding image optimization, you can read this post.
Server owner has 100% control of the image
This one is actually pretty funny, tons of kids link to images and put them on their myspaces without realizing they are actually linking to the server owner. Oblivious to them the server owner can edit the image or replace it with something like a penis just to mess with the people that are taking advantage of his material. I cannot stress this enough, make sure you realize who’s media files you are taking. 
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