Timothy D. Arnold is arguably one of the most prominent experts in the site promotion area. Here is a great piece he has written on link exchanges:
Let's face it. Getting webmasters to link to your site is difficult.
But a good linking strategy is necessary to build link popularity - a measure of the popularity of a website based on the number of
other website's linking to it. And at the same time it has become very difficult to compete on the internet with websites that have
1000s of backlinks, sites that have their carefully chosen anchor text firmly in place.
The Power of Link Exchanges -Complete Article
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