Links are are very important factor in SEO. There are two types of links that are important in SEO - inbound links and out bound links. Outbound links are links that start from your site and lead to another one, while inbound links, or backlinks, come from an external site to yours, e.g. if a.com links to mydomain.com, the link from a.com is an inbound link for mydomain.com.

Backlinks are very important because they are supposed to be a measure of the popularity of your site among the Web audience. It is necessary to say that not all backlinks are equal. There are good and bad backlinks. Good backlinks are from reputable places - preferably from sites with a similar theme. These links do boost search engine ranking. Bad backlinks come from suspicious places – like link farms – and are something to be avoided. Well, if you are backlinked without your knowledge and consent, maybe you should drop the Webmaster a line, asking him or her to remove the backlink.

You can submit your website to a lot of paid and free directories to order to generate quality backlinks (http://dmoz.org or http://dir.yahoo.com). Sometimes you can agree to a barter deal – i.e. a link exchange – they will put on their site N links to your site and you will put on your site N links to their site - but have in mind that this is a bad, risky deal and you should always try to avoid it.

Anchor text is the most important item in a backlink. While it does matter where a link comes from (i.e. a reputable place or a link farm), what matters more is the actual text the link starts from. Put simply, anchor text is the word(s) that you click on to open the hyperlink – e.g. if we have the best search engine, than “the best search engine” is the anchor text for the hyperlink to google.com. You see that you might have a backlink from a valuable site but if the anchor text is something like “an example of a complete failure”, you will hardly be happy with it.

When you check your backlinks, always check what their anchor text is and if there is a keyword in it. It is a great SEO boost to have a lot of backlinks from quality sites and the anchor text to include our keywords.

Internal links (i.e. links from one page to another page on the same site) are also important but not as much as backlinks. In this connection it is necessary to say, that using images for links might be prettier but it is a SEO killer. Instead of having buttons for links, use simple text links. Since search engines spider the text on a page, they can't see all the designer miracles, like gradient buttons or flash animations, so when possible, either avoid using them, or provide a meaningful textual description in the <alt> tag, as described next.