Alexa Traffic Rank
In simple terms, Alexa Traffic Rank is a rough measure of a website's popularity, compared with all the others out there on the internet, taking into account both the number of visitors and the number of pages viewed on each visit.
How it works?
But the traffic which Alexa takes into account is not just normal traffic,pageviews.Alexa only calculates those hits which pass through their system i.e.,they only track those visitors who have installed alexa toolbar on their browsers and ignore the remaining visitors who haven't installed alexa toolbar on their browsers.And then Alexa uses a complex mathematical formula on three months' worth of data to arrive at the ranking for each site.
Conclusion
This can be used as an indicator for website's position among large number of websites based on both visitor numbers and the number of pages viewed by each visitor. The 'most popular' site is given a rank of 1, the second 'most popular' a rank of 2, and so on down to the millions of websites that have relatively few visitors.Lesser the alexa rank better is the website/blog.So always strive to lessen the alexa rank which serves as an indicator for a website's popularity.
Let me know your views on alexa rank in your comments.