I don't do it. Why waste my time doing something that might work a teeny tiny bit? When I can be spending time doing things I know definitely work.
you could check quality before exchanging using seo quake,search status and seeing the cache,index of the site you are exchanging to get a quality links
link exchange is a method to increase the page rank and Google also recommend the link exchange. and every one should use link exchanging for the better result in site traffic.
In traditional link swapping, you place the link of other website at your site and in return other site will place link back to you. So if many such links are present where you have direct link exchanges search engines will spot it quite easily and term your site a friendly with those site and hence will not pass on the value of all those back links, as it would have done had they thought these links as being natural. The concept and proper implementation of 3 way linking brings good old days back when linking used to be more natural. Importance of 3 way link exchange * In the usual reciprocal link exchange you place the link of other website at your site and other website will place back at your site. So if many such links are present at your site going in out, search engines will notice that easily. So search engines will not count your every reciprocal link and your page will not be increase by such reciprocal links. * By using 3 ways link exchange your reciprocal linking will look more natural. * 3 Way Link Exchange can be very beneficial if you have a website whose page rank is good and have number of link, you can use the popularity of your website to increase the page rank / popularity / SERP of your other newer website(s). * The 3 way link exchanges seek out permanent, solid links for you this will help you in attracting more traffic and increasing the quality of your site. * Your 3 way link exchange can be at its best when every site on the network of partner's site is very specific to topic searched by user. This will pass on a strong message to search engines that you do value all your links and they will look at your website with more respect and show more love to your website by placing it higher in search results.
Hi......I would like to tell you that Google give importance to link exchange as 2 way or 3 way. It help to increase the page rank as well as potential visitors towards the website.. You have to do effective link exchange with good relevant pr sites.
Link exchange is always important factor of SEO, If two sites having PR 2 exchange link and give link on home page of each other, then links help them both
It can help however if you over do it you may find your self with a Google penalty, plus a lot of the links tend to get devalued.