To improve our website ranking and internet presence we need to exchange links with other websites. Some search engines won't even spider websites that do not have links pointing to them. But to improve the page ranking you have to make sure that big majority of links you exchange are relevant to the content of your website. For example there is no need to exchange links with travel website if your website is about food. You can still have some links to the website of not relevant content, but you should try to limit them.
So why should I bother having any non-relevant links?
Well you need many links pointing to you to build a good internet presence. If you try tools such as marketleap's link popularity check which can give you a detailed report on number of links to your website found in all major search engines, you'll see that quantity of links does matter in terms of internet presence.
Page ranking goes up with number of links, but if the liks come from the websites with relevant content that page rank goes up higher.
So how do I build a good, relevant link directory?
Building a link directory is relatively easy but unless your server supports server side programming like PHP or ASP, maintaining it can be very time consuming. If your server has PHP support there are many link exchange scripts can be downloaded for free. Try searching hotscripts.com or scripts.com.
Some of the free scripts may be hard to install or customize, but if you have some programming knowledge it may be easy to do. There are also very affordable scripts out there like marketleap's link popularity check which automates the whole link exchange process and also includes install file and detailed instructions on how to customize it.
Find out what approach to link exchange works best for you, because link exchange does affect our internet presence and page ranking and it will continue to do so for a while.
marketleap's link popularity check
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