All links are not created equal, and while exchanging links may seem like a good idea, you need to think it through, carefully. For example, if you own a hosting website, how does it possibly benefit you to exchange links with a butcher, baker or candlestick maker? Answer: It doesn't. The link has to be relevant to your website's overall theme, otherwise, it will do you no good. Here's something else to consider: If the website you're exchanging links with has a bad reputation with the search engines, your website could also develop a bad reputation by association. That could hurt your website's ranking.
Remember, there are a lot of spam websites out there that look completely legit - but they're not. Be careful.
In his article, Why I Don't Participate in Link Exchanges, James Huggins writes:
"Do not ask me to link to you because it will help your ranking. I don't care diddly poo about your ranking. Ask me to link to you because I will be able to say, with all my honor and integrity, to my visitors, that they will benefit from the link.
The right way to get people to link to you is to offer content that is useful to their visitors. They will gladly link to you then. And, if you offer value and get honest links, then when someone searches, the engine will deliver your page because it truly is the best page for the surfer."
Google has made it clear that it frowns on the practice of mass link exchanges. So unless you want to incur the wrath of Google, be very discriminating with your link exchanges.
So am I saying don't exchange links?
No, I'm not. I'm simply saying, exchange links prudently!

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