If I understood you well
atarplus, we both agree that getting good backlinks to your site is essential, right? What you are not sure of is the link exchange part.
Quality (not just quantity) backlinks are a great way to get your site noticed by search engines for indexing, getting a higher PageRank (in Google) and ultimately get higher rankings. Besides search engine optimization, good backlinks are also great for direct traffic. They will get your site noticed by these websites’ visitors.
My answer as to whether link exchange is necessary or not is it depends. It depends on your site’s neighborhood. A neighborhood is a network of sites that are considered by search engines as being authorities in your particular field. If it is a trend within your neighborhood that you link to their site before they can link to you, then you should consider linking back to them.
A lot of links on your site are not a good idea as they reduce the importance of your own internal links. You should be very careful as to whom you link to. A link to a site that is considered as bad by search engines can result in you being considered bad too can even be banned.
Reciprocal links are also not helpful for both parties. I always make it a point that I run a separate web site that I always put up links for those sites that require reciprocal links so I get these links away from my important site. It also breaks the links so it doesn’t appear “artificial” as Google calls it.
Because traditional link exchange is very slow and time consuming, I always kick start my backlinks by posting in relevant forums, blogs etc
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