I see. I have always search about this in google. Is this an effective way to increase the rank/traffic of your website?
Link Wheel is good way to promote your website and Google love it this is natural way and you can make fast indexing and cashing popular site to do so.
Creating a link wheel is challenging though as you need to open several accounts in various web2.0 sites from article directories to blogs. Once you have the accounts, you need to spin an article into several versions and submit/publish them into these sites, then link them using varied anchor texts. Link wheels provide backlinks to your webpage but you need to make sure that you make that links appear as natural as possible. Create open ended link wheels as opposed to the closed one. Open ended link wheels make it more difficult for search engines to "see" your links wheel. Hope that helps. Have a good day!
Link wheel is basically generate by putting link in the high pr website so you have to make cycle of link from one site to another site.This process will determine strong backlink of the site will help you good ranking in the search engine.