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At present linking to our website using our full domain name and parameters tends to get rather long.

http://www.mywebsite.com/this/is/my/long/link/that/can/get/a/bit/ridiculous

The great thing about the above link is SEO eats it up and loves it.

However, we like the look of bitly links:

http://my.site/vGst12r

But, we are unsure of how this is going to affect our SEO and whether or not we should rather stick to what we have.

Any insight would help.

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Answer from Matt Cutts:

How do URL shortners like bit.ly affect search engine results?

Most shorteners resolve to the full long URL and are treated as a 301 or Permanent Redirect. Therefore this does not hinder spider crawls, change/reduce PageRank, or otherwise negatively affect the site and where it shows up in organic search results.

Source: Matt Cutts

Matthew Cutts works for the Search Quality team in Google, working on search engine optimization issues. So I can say this source is pretty reliable

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