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What does my Alexa ranking mean?

Alexa’s Traffic Ranks are based on the traffic data provided by Alexa  Toolbar users and data collected from other, diverse sources over a  rolling 3 month period. Traffic Ranks are updated daily. A site’s  ranking is based on a combined measure of Reach and Pageviews. Reach is  determined by the number of unique Alexa users who visit a site on a  given day. Pageviews are the total number of Alexa user URL requests for  a site. However, multiple requests for the same URL on the same day by  the same user are counted as a single Pageview. The site with the  highest combination of users (Reach) and Pageviews is ranked #1.  Additionally, we employ data normalization to correct for biases that  may occur in our data.

Alexa’s Traffic Ranks are for top level domains only (e.g.,  domain.com). We do not provide separate rankings for subpages within a  domain (e.g., http://www.domain.com/subpage.html ) or subdomains (e.g., subdomain.domain.com) unless we are able to  automatically identify them as personal home pages or blogs, like those  hosted on sites like Blogger (blogspot.com). If a site is identified as a  personal home page or blog, it will have its own Traffic Rank, separate  from its host domain.

Please note that Alexa doesn’t have access to any site’s private  usage logs. For more detailed information about Alexa’s traffic  rankings, you can visit:

http://alexa.com/help/traffic_learn_more

There are limits to statistics based on the data available. Sites  with relatively low measured traffic will not be accurately ranked by  Alexa. We do not receive enough data from our sources to make rankings  beyond 100,000 statistically meaningful. (However, on the flip side of  that, the closer a site gets to #1, the more reliable its rank.) This  means that, for example, the difference in traffic between a site ranked  1,000,000 and a site ranked 2,000,000 has low statistical significance.  Sites ranked 100,000+ may be subject to large ranking swings due to the  scarcity of data for those sites. It is not unusual for such sites to  decline to “No data” Traffic Ranks, or to improve suddenly.

(info taken from alexa.com)