Backlinking is one of the best ways to generate traffic to your site. Not only does it help drive traffic to your site from others, but you can easily and quickly boost your page rank and your search engine position with back-linking. However, done wrong, back linking can actually hurt you.
Backlinking was once the term for exchanging links with other sites. The link that the exchanging site posted was a back-link. The idea was to create a loop that the search engines would continue to crawl, boosting page rank and search engine position.
Unfortunately, the search engines caught onto this practice, and now use a slightly different method to rank sites. They are now only effective if they are not a true back link at all, but actually a link to your site with no reciprocating link on your page. You can still exchange links, but you will have better luck if your link is not placed on the same page that is pointed to by the other site's link.
This is due to the fact that search engines now consider that if your website is popular enough to have many unreciprocated links, it must be worthy of inclusion and should have a higher page rank. Be sure to pick sites that already have a high page rank as these sites will be crawled more often and lead to your site being crawled more routinely.
One way to have a lot of back-links is to list your website on as many directories as possible. Some directories have a fee, but when you average out the annual fee it is really a drop in the bucket. The cost doesn't even compare to the benefits you will receive if the page rank of the site is high.
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