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Obtaining External links - reciprocal link exchange and free links
Link exchange basics
Obtaining links from other websites pointing to your website is a great way to start generating traffic instantly. Link exchange serves two good purposes. First, it brings actual visitors to your web pages, i.e. creates traffic. Second, if done properly it positively affects your website search engine rankings SERPs (more on this in search engine optimization section, for our immediate purposes it's enough to say it's a good thing). Below more information about how to obtain external links and how to do it properly.
How to exchange links
The main idea of link exchange is to identify websites that are related to content on your website and get that website to publish a link to your website. A reciprocal link exchange is probably the most common way to exchange links, whereby you will be required to place a link to that website from your website. There are also many sites that will place a link to your website free and without you having to place a reciprocal link. A lot of websites will have a link page and a form to submit a link exchange request. For those sites that don't have a form for submitting link requests check whether the site has a dedicated links page or lists any links to other websites at all. If it does not I would say it's rather unlikely they would agree to publish your link (at least not without a fee). If you do find that a site participates in link exchange contact site webmaster and ask them to place a link to your web page. Offering a reciprocal link to their website will increase your chances of getting a positive reply.
Now, few important things to keep in mind when exchanging links:
Exchange links with websites that are related to content on your website. Getting links from websites that have nothing to do with content on your pages will bring little or no result. Having other websites link to yours can't really hurt your website search engine rankings (more on this in the SEO section). However, it is believed by some that having links to sites with 'bad reputation' can have negative effect on your site's ranking.
Building links is an on-going process. Of course, building up an initial set of links to your site to get your site started and then leaving but best results can be achieved when you build up links on a continuous basis. For example, you can decide for yourself, that each day/week/month you are going to obtain a certain amount of links to your site and try to stick with the plan.
These days there is a lot of software (some is free and some is paid for) that automates the process of building links. I personally never used one and frankly never replied to requests originated from automated link exchange software, as I prefer the human contact, but it is definitely one of the ways to go about link exchange that has a right to existence. Since I haven't used any of these programs, I hesitate to recommend any particular ones. For those of you who are interested in experimenting with them, I suggest to do a search for "automatic link exchange software".