Because link popularity helps calculate Google's PageRank, reciprocal linking has become more important than ever to high rankings. One way to achieve a high number of inbound links is through link exchange programs such as LinksMaster.com. Although trading links has proven beneficial, the Internet is full of criticism against link exchange programs. This negative attitude has been pushed along by misunderstandings and misinformation spreading across the most popular online forums. In perhaps the most extreme case of paranoia, I recently read an article that likened link exchanges to "demonic cults." (No joke!)
At least one SEO is firing back at all this criticism. "Reciprocal links are NOT evil," Barry Schwartz of RustyBrick announced last week. "All this discussion in the forums about how people only want one-way links because they heard reciprocal links are bad and can get you kicked out of the search engines is taken way out of proportion."
The key, he says, is keeping your link building strategy natural and relevant. Link to other sites if you think those sites would be useful to your visitors.
"I have been swapping links with similar sites for years," agrees Dave Hawley, who noticed results similar to those of many LinksMaster members: "In addition to helping PR, they also bring targetted traffic."
Furthermore, there is no evidence of Google and other search engines penalizing sites for participating in link exchanges. In fact, inbound links actually help determine PageRank and can therefore boost your site on the SERPs.
It's important to keep in mind that things change in the blink of an eye in the search industry. You should use a combination of techniques, not just link building, to get your site to the top.