The article goes on to explain why link exchanges are not good for your ranking:
"In our Webmaster Center guidelines, as well as the other search engines’ guidelines, we warn against the use of techniques that artificially increase the number of links to your site as it may actually hurt your rank in the long-term. Link exchanges are a method of exchanging links on a large scale (sometimes automated and sometimes not) for improving search engine rankings. We see these links exchanges as being generated for the search engines and not having value for user. "
And then goes on to explain what is a good link:
"That begs the question, “What is a great link and how do I build them?” The truth is that great links are earned based on your unique content, service, or product. These links are always on topic and should not require a link in return."
In another previous article the Microsoft Search team explains what is a good link to improve ranking:
Ideas for generating high quality inbound links
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Start a blog – and write content that will give people a reason to link to your website
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Join a reputable industry association – often times they will list their members and provide links to their websites. Examples could be a local rotary club, or a professional association like the American Medical Association.
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Get involved with your community – participating with your community through blogs, forums and other online resources may give you legitimate reasons to provide links to your site.
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Talk to a reporter – is there a potential story around your business? Or do you have helpful tips about your business people might be interested in? Pitch a story to a reporter or journalist, and they might give you a link.
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Press Releases – if your company has a significant event, consider doing a press release through a site like http://prweb.com.
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Suppliers and partners – ask your business partners if they would add a section to their website describing your partnership, with a link to your website. Or, if your suppliers have a website, perhaps they have a page where they recommend local distributers of their products.
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Evangelize your site in the real world – with business cards, magnets, USB keys and other fun collectables.
The process of building up these high quality links can take time, and we hear from many webmasters who have tried to speed things up by purchasing links, or participating in linking schemes. We recommend webmaster be very careful with these, as they can often end up hurting your ranking in the long run by providing you with only low quality links that are often associated with spammy sites. If a link isn’t adding significant value to a website’s user, than it is most likely a low quality link.
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