Link building is important as Google and other search engines use the number of links that point to your website, (Back Links), to determine how popular and valid your website is.
Link popularity is determined (and page rank) by the number of external websites that point to your website. It is used as part of an algorithm (sliding scale) to determine where your website should be listed when a search is requested (hence Search Engine Ranking).
However, with the advent of blogging, where a webpage could include a whole dialogue of discussion between users who all end ever answer with their signature (always a link to various websites) the importance of links has diminished and altered. No longer is it the number of links, but the quality of the website that links to your website.
This process of link importance is further being changed with websites being penalized (in an SEO sense) for reciprocal link building (exchanging links between websites, ie I link to you, you link to me).
We recommend that clients take the time to let the internet decide its natural linking level to a client's website and not to go out actively building links that have no value to the internet.
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Domains SEO 2009SEO Consultant: Benedict
