Reciprocal Links
A reciprocal link, as the name implies, is where two websites link to each other. A few years back, reciprocal links use to be a good way to gain inbound links to your website. I use to spend hours e-mailing other webmasters asking them if they wanted to "swap links". In essence, you were voting for each other's websites, hoping that both websites would receive a boost in the search rankings.
In recent years the value of reciprocal links has declined steadily. There is still some debate over whether or not reciprocal links can improve your position in the search results. Many SEO's now believe that instead of reciprocal links counting as a vote for each other, you are essentially canceling out each others vote.
For example, if website a links to website B, and website B also links to website A, the votes wouldn't count. Figure 5.1.3.b below illustrates this:
Figure 5.1.3.b Reciprocal Link Example
Figure 5.1.3.b Reciprocal Link Example

I don't spend much time pursuing reciprocal links and will delete many of the requests that I receive. I will occasionally grant a reciprocal link request, but only if the website has good content and is topically related to my website.
Continue reading here: Link Popularity
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