when one webmaster exchanges a link w/ another. supposed to help on the SEO side - however, I've read that Google frowns on such practices.
Link exchange is an effective internet marketing system that makes it easy and fast for you to find link exchange partners and increase traffic to your websites. * Increased link popularity and increased search engine ranking. * Direct traffic from the links. * Building relations with other websites.
Link exchange is based on give and take rule. You give a link to your site to your business -- themed - website and in return you take a link from that site. Hopefully you know what is link? Otherwise keep opened a tab for oxford dictionary. It will help you
Link Exchange has three types (1)One way (2)Reciprocal(Two Way) (3) Three Way. get more information to read What is link Building?
You put an url of other people's website/blog on your blog and have your website/blog's url listed on other people's website/blog in return.