I never really do link exchanges unless they are part of a blog post. Also, I don't link to sub-par websites or unrelated websites. It's okay to link to another site and they link to you. One example is I have my BBB Membership page point to my site and I point many links from my site to that single BBB Page.

Look at the site you are going to link to and ask yourself, "Can this potentially cause a problem in the future? What's the risk?" I have turned down MANY sites wanting to link exchange, but if they are willing to write a high quality guest blog post, then I'm fine with it whether I get a back link from their site or not.

I think I'll be using this soon: http://www.bidsketch.com/

They are on SEOMOZ's Perks http://www.seomoz.org/pro-perks

This is a tough question because we don't know the business objectives of the company or site. If it's one company and you are trying to get local listing, why not just get a Google + page and verify all your local pages via the post card Google sends through the mail.

If all locations sell different things (car parts vs women shoes), new domain or sub-domain. But if your client is selling the same thing like Starbucks, then example.com/city.

I would personally create a page with schema.org markup for addresses and link them to /city

@BJS, I would export a file from GWT  and filter the results. If your URLs are in GWT, then most likely it's indexed in Google.

Use my site as an example. www.shipoverseas.com

The homepage is about "international car shipping".

All the landing pages are about "shipping cars to xyz country".

When I 1st started this site, I didn't know that my home page was going to be about "international car shipping". I thought I was going to try to have it rank for "ship car to Europe", "ship car to au", "ship car to africa". Instead I made categories + landing pages.

I hope that helps you organize your site.

Tim, my marketing strategy is based off what people are looking for, not what I think is best. Look into your GA to find these clues.