Your search engine ranking is improved as you build link popularity - i.e. the number of other websites that link to yours. In fact Google advise that the best way of improving rankings is to keep improving content and the number of relevant links coming into the site.

The links should come from  sites with related content. Then the search engines can understand the link is 'meaningful' - as against from a link farm whose sole purpose is to 'Spam' the search engines.  It is then reasonably assumed that a site with more links to it must have content that others rate highly. Hence the search engine is more likely to assume that a surfer searching for that subject will find the site useful and suggest it ahead of sites that do not have the same support.

However, there are now so many link exchanges on the web, that I believe the rules are now in process of change.  For an explanation of this see my October 2004 Newsletter.  The future lies with a more complicated strategy but is based on providing an improved service to searchers.  Linking strategies should now be based on the following principles:

1. Submit to all relevant directories where searchers might look for your product or service.  If they charge a fee, take a minimum commitment until you can see how many referrals they are providing from your own web statistics.
2. Make a list of 'authority' sites which you judge capable of passing you good referrals and give them sufficient reason for them to want to link to you. Basically this means offering payment or content or a mixture of the two.
3. Accept reciprocal links from relevant sites when offered
4. Contribute to forums or new sites where a link back to your site will be contained in the content so that it is present in an authoritative environment without directly competing links.
5. Plan a long term content improvement strategy to persuade other webmasters to link to you.
6. Monitor your referred visitors from both search engines and others to see that both are rising steadily.

Though exchanging links purely for the benefit of search engines will decline in value, I am still glad to swap links with other sites that will also help Marketing Executives and Webmasters use IT in general, and the web in particular.  If you have suitable site, please contact me to arrange a link exchange. 

I have already agreed links with two groups of sites. If you are a DIY webmaster look for help at Web DIY Resources.

If you want help from a professional - and don't think I can do the job! - browse this list of Web Marketing Professionals.