Just in case you've forgotten, an outbound link is a url that you have on your site that points to another website.

In today's Google PR obsessed Internet world, everyone is completely focusing on getting in bound links to your site. While you should always be on a mission to get more sites to link to yours, you must not forget their polar opposites.

Remember, by having outbound links from your site, you are in essence "voting" for the site you link to. This is part of the entire ranking algorithm process for all the search engines. The idea is, that if two sites are similar in content and design, a site with more links pointing to it would be considered more important by the search engine.

So then, why should you help out any other site? Actually, by carefully linking to other relevant sites, you are increasing the relevancy of your own site.

Pretend I have a pizza shop, and I am located in Anywhere, USA. It's a typical site that displays types of pizza, store location, hours, and coupons. I also know the power of outbound linking. For this case, I am going to link to 10 sites: Domino's, Pizza Hut, Little Ceaser’s & Papa Johns. Next, I link to 6 sites that are physically located in Anywhere, USA. (And their physical addresses are listed on their sites.)

Now, I will switch roles and view the site as a search engine spider. I navigate through the site, and determine that this site is about pizza. Then I find a resource page and discover some well-known links (Domino's, Pizza Hut, Little Ceaser’s & Papa Johns - and as the spider I know that these are major players in the realm of pizza). Next, I find 6 links to sites located in Anywhere, USA.

So, as a happy spider leaving the site, I now know that the site I just visited is about pizza (site content and links to the major players of the pizza industry), and that it is located in Anywhere, USA.

Next, I visit one of the 6 sites listed as a resource in Anywhere, USA. I find the local address, and it has the same zip code as the pizza site I was just at. Now I know how these two sites are related to each other.

Taking into account the fact that this local pizza shop has also linked to the major pizza chains, as the spider, I am lead to believe that this shop has relevancy to the zip code of Anywhere, USA.

So, as the spider returns the information to the database to be processed in the algorithm, it has pre-sorted some search results based on the links your site points to.

Another benefit of outbound linking is Geo Targeting, or Local search. There is a lot of speculation that local search is the next big trend in Search Marketing. While only time will tell, it won't hurt to have your physical address listed on your website for those who will be embracing local search.

As an experiment, I created a site with a very unique url (to avoid the possibility of people finding it by accident), and I made it only 1 page long. The only thing the page consisted of were 80+ outbound links to relevant sites in the SEO industry, tools, forums and some tutorials. When the PageRank was first updated for the site, it came out of the box with a PR of 3. It has since fallen to a PR of 2 (now that I’ve pointed a few sites to it!).

The whole point of this experiment was to see how outbound links affect your own rankings of your site. I was able to generate a PR of 2 based entirely on linking to authority sites in the SEO industry. So, take the time to link to some relevant sites, the big names (if any), and enjoy the power of the easy, outbound link.
Author
Paul Bliss from SEOforGoogle.com

Before even talking about benefits, do you know what directory submission is? It is a concept similar to the yellow pages, or directory assistance. Essentially, it gets your website listed in different web directories. Now, what are the benefits or directory submission?

Directory submission gets your website known to a wider number of people. Two web directories are Google and Yahoo. It is just like opening a phone directory. All you will see are business or personal listings arranged alphabetically. If you are looking for a certain service, it would be so easy to look it up. But did you notice that some listings are larger than others, bolder or more colorful? The business that did that had to pay more, but it is a justified expense because your eyes tend to zoom in on the large box or the bold print. Isn't it true that you normally would call that highlighted business, simply because it is bigger or bolder?

The same principle works with web directories. Submitting your website into a directory means getting your website indexed. It lets people know you exist and that you are open for business. It gets you noticed.

Another benefit of directory submission are the links. It has one way links or links exchanged with other complimentary sites. For example, if you are a website for men and their hobbies, you could have links with retailers of certain gadgets and toys, and vice versa. This can help drive more people to visit your website. Thus, it can boost your search engine optimization.

Why would you want to do this? If the purpose of building a website was to one day be able to sell it or tie up with a larger website, for an obscene amount of money, then you need to get your website known. A huge source of revenue, aside from a buy out, would come from advertisers.

If advertisers become familiar with your website, and notice how much attention you are getting from their market, you can bet your bottom dollar that they will want to work with you. The more advertisers you have, the higher your income potential. The higher your income potential, the more chances someone out there will want to partner with you or buy you out. Thus, another success story for others to envy.

I would assume that the reason you started a website was in the hope that you could become successful. Then you need directory submission. The benefits of directory submission are too strong to disregard.

Most directories do not charge for listings, but if they do, the fee is minimal. It is also worth the cost. So, why not look for the best professionals to help you fast track your success story? Whatever you decide on, one things for sure, you essentially have nothing to lose, and everything to gain.

When you think about the skills it takes to do link development your first thought probably isn’t “coding” is it? However, as we see more template-based sites and sites administered by people who don’t have much coding knowledge gain authority, you’ll potentially want to think about paying a bit of attention to at least basic HTML.

As you may have gathered, particularly if you’ve been link building and needed to approach a blog owner, not everyone has a site because he or she is adept with code. Now, you will find some blog owners who’ve chosen a blog package for various reasons, people who are quite fantastic coders but simply wanted to set something up quickly, have ease of maintenance, etc. What you will mostly find, at least according to my experience, is people whose knowledge of HTML isn’t all that fantastic, which isn’t at all surprising, considering the fact that these blog systems have been developed for ease of use, even for the least technical beginners. They are the great equalizer.

Here’s the issue with this sort of thing: blog owners can be your bread and butter, at times, depending upon your industry, and there are cases when you are going to be the only person on earth capable of explaining to this person about how to insert a link to your site. Sounds easy enough, right? It’s not, actually. I’ll start by detailing a conversation that one of my link builders had with a very, very sweet blog owner who obviously hadn’t a clue about how to do what we wanted.

A link builder made contact with this blog owner who has a truly spectacular blog, the kind of thing that, if it’s in any way motivated by anything other than the simple desire to write and spread ideas, is simply undetectable. This blog, on a scale of 1 to 10 with 1 being obviously done just to get rankings and/or traffic and 10 being done for the joy of blogging, would be a 10. Well, a conversation was started with my link builder, who happens to excel in the art of communication, and a deal was struck, with the link going live. Thus, the problem began…

The link was made live, as I said, but it was without a doubt the most obvious and horribly placed link that I have had the privilege to see. It stuck out like a flashing banner, only with less panache. We discussed how to handle this and another link developer actually went to the trouble of using Photoshop and a spray-painted arrow to indicate to this lovely blog owner EXACTLY where we wanted our link, so as not to appear too obviously “obtained” for a client. It didn’t hit home. The blog owner, not understanding HTML, couldn’t figure out how to do what we wanted.

And why would she be able to, anyway? This is a woman who has a blog because she enjoys writing about certain issues, not because she’s a coding genius. If blog software wasn’t so easy to use, she may never have started a blog. She isn’t alone in this regard, and it’s these types that can generate the best content out there.

Even on the sites that aren’t template-based, you can’t assume that you’re off the hook and that the site owner is code-savvy, of course. In the end, if you want the link and you want it placed in a certain spot, you need to be prepared to do things such as dig into the site’s CSS and HTML and figure out how to make it happen. Coding a link seems so simple, doesn’t it? However, let me assure you that there really are a thousand ways to mess it up. Even if you take the time to send over the code exactly as you’d like it, you can’t be sure that it will come out the way you want. As a link builder, you become the project manager of each link and it’s your job to ensure that it goes up and meets the requirements, whatever that takes.

Thus, my argument for knowing just a tiny bit about how to code…as you can see, it sometimes takes a bit more than simply telling or showing someone where you want a link. Some of your best sites are going to be run by people who will need you to hold their hand for the entire process, and if you really want the link, you’ll need to do it.
more info from here Search Engine Land

Link exchange tips, strategies and innovations.If done correctly, building inbound links can improve your rankings in the search engines by raising your link popularity, increasing your website traffic, and providing a valuable resource for your website customers and visitors.Here are some link exchange tips to fulfill you target.

1. Submit your site to Web Directories. you can get several hundred backlinks to submitting your site in relevant category . An alternative would be to hire a manual directory submission.

2. Submit Press Releases to PR sites. Launch a press release about your websites to several PR websites,who will distribute it to various online news sources. A good way to get a free link.

3. Reciprocal Links with Relevant Websites. Its important to pick sites that are of high relevance so you’ll not only get links but traffic. You can find link partners by emailing them directly or searching through webmaster forums.

4. Squidoo Lenses. A Squidoo lens is fairly easy to create. It only takes around 15 minutes to set up one fully and you’ll be able to insert a bunch of anchor text links to your website along with your feed content.

5. Article Submissions. Create a short article on your niche topic and submit it to article directories for a backlink and some traffic. You might get more links if your article is picked up and published on other websites.

6. Social Media Profiles. There a whole bunch of social websites online which allow you to insert a link to your website on the profile page. Sign up for some of them, preferably using a username and avatar that brands your business or you as a person. This might come in useful when you decide to promote your site via the social website in the future.

7. Social Bookmarking Websites. Certain social voting websites like Digg are often crawled by search engines and their links do help to get a website indexed and more traffics.

8. Forum Signatures. Sign up for some forums in your niche and start contributing to ongoing discussions.Insert a link to the homepage or some inner pages of your site.

9. Create a Tool, Theme or Widget. Pay a designer to come up with an add-on application or template that is related to a specific social network, popular website or platform. Include a credit link that points back to your designated website.

10. Blogs on Other Blog Platforms. Use existing blogs you have on other blog networks. Or set up different versions of your blog on different blog networks like Wordpress.com, Blogger and Xanga. Link to specific webpages on your website.

11. Comment on Other Blogs. Start commenting on relevant and popular sites in your niche. Don’t just spam for links but focus on building a relationship with other bloggers as well. Write a relevant comment and try to avoid using keyword names or signature links.

12. Guest posting on other blogs. Like article and press releases, this one involves having readily available content you can send out to certain blogs in your niche. This is great for getting relevant links and traffic.

13. Hold Contests. Some websites often offer contests in a bid to attract anchor text links from bloggers. An example is this iPhone giveaway on Gary Lee’s site. Contests allow you to determine the specific anchor text but its possible that too many links using the designated keyword may harm your domain instead.

14. Collaborative Projects. You may need to develop an article specifically for a writing project, blog carnival but it will usually get you a couple of backlinks, depending on the number and generosity of the
participants involved.

15. Offer your Expertise. This will apply if you have a specific skill set such as web design, copywriting,translation or SEO. Write to an established website and offer to revamp/optimize their website in return for a mention or credit link on a webpage. This offers excellent branding, particularly if your offer is picked up by a website with a decent audience.

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