Are link exchanges bad for SEO these days? Also, is adding my site to free yet relevent directory sites a bad idea?

[eugenecomputergeeks]

I operate a computer services company in Eugene, Oregon called "Eugene Computer Geeks".  We do a lot of web design, and need incoming links to my site very badly.

Lately I've been asking clients if they would link to me, but they almost always ask for a link in return.

If we exchange links, does Google penalize my site?  Would the incoming link be better for SEO if I'm not linking back to the other site?

ALSO

Is it possible that manually submitting my site to free, yet relevant web directories would hurt my rankings?  It's not a big deal to me if it doesn't help my rankings, as I see a benefit to having my site listed, but wanted to make sure there wasn't a chance that it would hurt my rankings. As far as I know all the directories are free from SPAM, porn, warez, or anything like that.

Thanks!

[KeriMorgret]

A couple of clarifications here. Links from .edu (as well as .gov and .mil) are often thought to have more value because not everyone can register those domains, though there is debate as to whether they do have more value or not. Anyone can obtain a .org domain, no matter what its purpose.

Here's a good post from Cyrus on the SEOmoz blog about building links with directories:

http://www.seomoz.org/blog/seo-link-directory-best-practices

[loopyal]

Cameron, You have services to offer, so you should also consider writing press releases about your company and your services. There are many free press release sites as well as paid ones. Most allow a link back to your site. Most allow you to use link text. Localize your releases and you should get visitors from them. make your releases interesting. Structure them well and they will help you These are one-way links.

[eugenecomputergeeks]

Thanks so much!  Such a well-written and helpful response.  I will stop with the link exchanges and save up for Yahoo Directory.  Really appreciate it!

[eugenecomputergeeks]

Thanks so much for your response! Very helpful. I wasn't sure about getting into Yahoo directory, but will save up and do it.  I'll stop with the link exchanges.

I posted on craigslist for professional writers and have had a ton of responses. I want to get really good articles on my site so that people will want to link to me.

[mediabase]

Hi Cameron, First of all Link exchanges are programs in which one site offers to link to another site in return for a reciprocal link.The key component of a link exchange is the _requirement  _for a reciprocal link.

Link exachange is good when the page to which your linking has a high authority, trust, meaning it ranks high in search engines, which will add value to your site as well. Usually sites having the domain extension ".edu"&".org"are considered to provide high value links. However links from authoritative sites are not easy to obtain.

Link exchange is good for incoming links as it bring lots of traffics towards your website and it does helps to navigate from one site to other to find valuable content.

Link exchange and reciprocal links are natural to some extent. On the other hand, obvious and massive link exchange schemes or networks can be detected algorithmically, so you end up penalised sooner or later.

Please check Google's policy on Link Schemes ( http://www.google.com/support/webmasters/bin/answer.py?hl=en&answer=66356 ) express that excessive link exchange is bad.)

I feel that

Limited link exchange is good.
Aggressive link exchange is not good.

I think that submitting your website on free directories & not on relevant web directories would hurt you because If you are not on the same niche directories it will affects in your visibility & overall ranking as well. So keep in mind that keep submitting your website to all free directories & as well as same niche web directories.

[RobertFisher]

First, I would think about changing the approach with clients. We do a lot of web design here, too and we rarely put ourselves in as a link to our site. It must have a reason beyond getting our company a link.

Will you be penalized for doing reciprocal links. I do not believe so unless you are doing it on a big scale. My belief is that you won't help yourself either. Why, well you need anchor text in the eyes of Google, etc. So, you have to do a bit more work. I do not know if this will help you or encourage you, but I really liked this post by Wil Reynolds of SEER: On Google Making Liars out of the Good Guys.

I personally would say if you do a few manual submissions it may help, but another place you can rock your own world is Local SEO: Google Places, Bing Bus. Portal, Yahoo Local, Citation sites like Yelp, Citysearch, etc. Here is a good list I was turned on to by Miriam Ellis of Solas Web Design: http://searchengineland.com/top-50-citation-sources-for-uk-us-local-businesses-104938

If you do the citation sites correctly, verify your listings on the engines, and maybe consider shelling out the $295 for Yahoo Directory, it would likely help you a ton.

Best