Internal links connect different pages within the same website. For example, a company homepage will contain a menu listing the company's various offerings. When you click on a specific item, the internal link will take you from the current page to a page on the same site which has more information about the requested topic. External links work similarly, except they connect one website to a different website. External links are very beneficial as they direct traffic to your site, which will create a better position for you in the search engines.