I'm researching link building and how it would help me compete in a competative environment - i.e. rank well under highly searched keywords. A quick google search for "link building" shows a number of sponsored links for link building companies that offer a number of links for a monthly fee. An example of two companies are: onewaytextlinks[dot]com - 400+ one way links, $24.95 per month linkexchangeexperts[dot]com - 806+ one way links, $24.95 per month Are these services actually useful or money down the drain?
As an SEO firm owner, I can say that yes, people do use link building companies. Those ones you are mentioning are doing one of two things. They are either using an automated 2 or 3 way link-exchange network, or they have created spammy networks of web sites that they plug people into right off the bat. Chances are, they don't help much. You should be wary of a company that guarantees an exact number of links per month for a set fee. It indicates automation and that is never good when it comes to SEO. Real link building takes some time and work because it involves looking for relevant sites in your niche, and it is different for each company. A good firm will employ both skilled link ninjas (as Jim Boykin likes to call them) and strategic linkbait. Those combined are very effective. You don't have to hire a firm though if you're willing to do the work yourself. I've got some guides on link building here and here if you are interested in doing it yourself.