The usage of the term Link in context of SEO actually is short form of the term Hyperlink. Hyperlinks or Links are clickable references or bits of html code that when selected will take a browser to a new section on a page (Internal), a new page on the same site (Internal) or a page somewhere else on the internet (External). They can also reference access to a document, media file (sound, video) or even a e-mail pop up. But for the sake of our fast track SEO we will concentrate on the second and third items. Internal and External Links

Using well laid out internal links provides an SEO boost and benefits user access. More details on how you create SEO friendly links.

Even more critical to your long term SEO Plan and Efforts is to build Quality External links

Internal Links tie together a site for a user by allowing them to follow the flow of text, concepts and ideas. This nebulous benefit may help your Search Engine Results Page (SERP) ranking. Remember anything you can do to benefit your viewers or visitors helps to not only get conversions (Users to do the action you want, like sign up, donate, buy…), but also may help in user reviewed directory listings and perhaps even spider automated ones.

Internal Links Help SEO by:

Allowing Spiders to crawl and traverse your site deeply and completely

Build the strength or relevance of a page through the use of keyword rich links

Provide a small boost in page rank by adding some link weight to the page

Google Page Rank is determined by the “Quality” and “Quantity” of External Links (Also know as Inbound Links). Yahoo and Bing also add weight to your SERP location by looking at the quality and types of other pages linking into your site.

The key is Link Quality over Quantity, though a large number of marginal sites will, at least at the moment, have a greater benefit than a few higher ranking sites. There are often heated debates about the equation of quality of quantity and the benefits/detractors of link farms, etc. As a small business owner, time is critical and building quality links will benefit you long term. Do it right the first time.

Also if you concentrate on building good links now, in the future when, not if, the Search Engines and Directories fix the loopholes, there will only be a positive effect. Yours are right and rank higher, those that did it wrong are penalized or banned. Search Engines are there to provide the best content; they are looking out for the browsing user not the business. Cheat and you may get penalized or banned from results altogether.

It is important to know who is linking to you to keep your reputation clean. If you are engaging in reciprocal links (Exchanges) it is important to make sure your partner is on the up and up.