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Our primer on websites...
If you are one of the many people overwhelmed by how all of this works, we'll dummy it down a bit. This page is mainly all about linking.

Linking Basics
The invention of the hyperlink allowed the web site to truly come into it's own. Web links can make it possible to easily go anywhere you want seamlessly. Search engines use links to explore the web, when a search bot finds a link on site "A", the bot will follow that link and index the new site (B) and add it to the database (if it's not there presently) - or update the database if there are new pages and information.

Relevancy
Over the years, it was generally accepted that the more links you had pointing to your site, the higher you would rank. For awhile, that seemed to work, but as the search engines soon found out, many sites were "gaming the system" with links. To better achieve accuracy in the search results, the search engines algorithms have started to use relevancy as a factor on links. If you are renting lawn equipment, a link from a Viagara site will be of little use, if the link comes from a company that sells lawn fertilizer, that can help - it has relevancy.

Adding resource and/or linking pages to your site
Most web sites overlook this, an organized resource section helps your viewers with additional information, and may contribute to helping you achieve higher rankings. I recommend using topical resource pages rather that all on one page. For example, our lawn equipment company could have a resource page devoted to links on landscaping supplies such as fertilizer and plants
and yet another separate page devoted to information sites, such as local ag or extension service  infopages or university ag infopages/ By making each page topical with a "theme' of content, you add relevancy. You may not get much traffic from these inbound links, but the search bots see them and measure them in order to best rank your site and that may be worth a lot to your success in ranking your site. A well organized topical links page also is attractive to other sites that link to you - it helps them, and that's an attractive plus in getting them to link with you.

Text Links
The actual link should have relevant text, NOT "click here". A good text link could be: More on our landscaping supplies - fertilizers and grass seed.
Relevant text links are where it's at. Banners work well as an eye-catcher and are effective, but text links may be a better bet for ranking.

Linking Policies
State them right on your link pages; yes you want relevant links, contact me here at (add email or ph number). Make the links as nice as possible, pictures, logos, some nice copy - all can contribute to making this a success for both parties. Be wary of sites where you can't find your link naturally, they may be link farms and this is not good form. If a site is chock full of Google or other adword programs instead of content - avoid them. Only exchange links with sites you think your valued viewers would be comfortable with.

Trusted Links
I have always believed that the search bots "trust" certain sites more than others. A link to you from a DMOZ category would be seen as "trusted" as to accuracy than say a site that has been online only a few months and is about a completely different topic.
It may also be that Chamber of Commerce sites and trade organization sites have more importance as well. Many web savvy companies use the Google page rank as a measure of importance - I'm not a big fan of this, a site with a very high page rank still should be relevant. Recently Google has downgraded page rank for many sites, especially those that appear to be selling links. Which, by the way is what Google does for a living - so it figures they don't like the competition for a very lucrative revenue stream - go figure.
 


Content and Links
Arguably two of the most important factors in high search rankings. For links, this is no longer a case of "more is merrier".
    
    Look for relevancy.

A link from a relevant site may be seen by search engines as a "vote' for your site's importance.