When you insert a dofollow link on your website, it will point back to your site, strengthening your website’s authority. This shows search engines what other sites, blogs, and posts are linking to you.

For example, if Company Y uses a link from Company X that is dofollow, the page or blog post used in the link will be taken into account in the page ranking for Company Y’s ranking. 

When you insert external links on your website or posts, it’s important to make sure they are from sites with good authority as this will impact your blog’s authority too.

Learn more about dofollow links and how they differ from nofollow links here.