I have big confuesd with this. SEO includes many off pages works. It includes Link exchange methods aslo it is really helpful for improving backlinks and PR or waste out time.Which one method is most useful for improve page rank ?
Link exchange is not useful, however link wheal strategy is very useful where you link to your partner and your partner links to your another site. This way google may not identify that the link is exchanged.
I believe it is not worth the time. These links are not valued much. You can do few link exchanges which is acceptable. Keep them less than 5% of your total links. If you do only link exchange then you are at risk. Your website could be banned for this.
2 way link exchange is almost pointless. You need a minimum 3 way, all coming from different IPs. Make them better by putting the anchor text in context - i.e. surrounding the anchor text with a block of text related to the link, say 50 words on topic.
I think link exchange was useful in past but now since google is changing its algorithm every now and then, only links from good PR and related sites are useful. a link from a unique ip, good content, good PR, related site and the site should not have lots of outgoing links will be considered by google.
Its been clearly said by Matt Cutt an year before that link exchange is not useful anymore and it won't be considered anymore in SERP's..
Two way links are not that helpful. Three way links will somewhat be helpful. I therefore feel it is not worth the time and effort.
You are absolutly right, Link exchange is the one of method by which you can increase your website PR and valuable live website backliks.
It was one of the best strategy previously but now it seem not that helpful in seo due to google prefer natural link
I have seen people in our very competitive industry who have worked exclusively using link exchanges and they are ranking well. I used to think it was not at all valuable, now I believe it's worth it.
Link exchange can be harmful nowadays...however, 3 way link exchange can be good if google is unable to find it..