Hi, Linkbait is the content which is placed on a web page like an article, blog post, picture etc for the intention of generating incoming links from other sites. Linkbuilding is the process of researching and requesting links to build a site’s link popularity. By building your link with the other sites you can increase your PR.
Here's a small thread with examples of linkbait. Basically it's using something as simple as a picture, an article or a contest all the way to something more complex like the examples in the above thread. It can be a big challenge, but if and when it takes, it can turn into hundreds or even thousands of backlinks very quickly.
Basically, if your link bait is delicious enough, other webmasters will bite, and link to you and your link bait, thereby generating links back to your site without you having to work to build the back links.
compared to link building link baiting is considered as the best way to build natural links for a website to make the site seo friendly to search engines. you can provide any offer like writing aritcle or logo etc., to get links for your site.
AND... if you think link baiting is too much work, or won't be effective for your commercial site, then might I suggest this: Link Bait Kindergarten: Creative Thinking Must Come First -Michael
Thanks, and sorry for the dealy on the trackback approval... your site was down when I went to look at it. Did you read through the comments on Matt's post? -Michael