To me “link exchanges” is a general term that covers a range of situations:

• reciprocal links between sites within an industry and preferably with the target geographic market area; and

• link exchange system where you sign on to a service list your details, incorporate a script to show links on your site and links to your site start appearing on any number of sites. The only thing in common is that these sites have subscribed to a link exchange system.

Option 2 is, at best, neutral but more likely dangerous. Google often talks about the risk of penalties for sites they perceive to be buying links or participating in schemes to unnaturally increase links and thereby dilute the value of the search results. The toughest penalty Google can impose is the removal of the site from their index. Not a great outcome.

On the other hand, option 1 can be seen as adding value to the community in which the website operates, perhaps even allowing the site to treated as an authority and thereby gain some advantage. Of course, Google may incorrectly assess the nature of these links and reduce their value.

The number of links acquired and the time it takes to acquire them are all likely to be determining factors in the way Google treats any links it discovers.

Of course, no one really knows what Google thinks. We theorise based on our own results. I’m comfortable utilising option 1 for customer sites and have not encountered any difficulties. I cannot be certain of the value the reciprocal links provide but I know all the sites have PR scores above 0. I am not prepared to use option 2. I perceive the risk to be too high.