http://ignitionmedia.com.au/services/local-business-citations/ through link exchanging is one of the easiest things to do badly, and most difficult to do correctly.
With more and more webmasters trying their level best to build “meaningful” links for their website, in an attempt to top pageranks, there has been an utter state of chaos. Link building is not just linking with any page, whether related to your site’s theme or not. It is a lot more than that, because Google sees every extra link on your site to understand its popularity quotient and thus, its index worthiness.
Google has some very specific ways to measure your link exchanges and that’s why SEO experts have come up with another way of link exchange, called three-way link exchange. Categorised as a White Hat SEO technique, this involves exchange of links between 3 websites. As per this theory, Google will not be able to find out if the 3 sites share a similar theme or not and hence, will accept the links.
While three way link exchange seems like a good method to build your links; the problem with it is that more often than not, website owners create dummy websites in an attempt to retain links received as a result of these exchanges. Since this is not a safe method of building links, it could lead to damaging your website’s reputation over the Internet, which could lead to long term problems.
Link building methods like three way link exchange is fundamentally incorrect. That’s because it mocks the tradition link building method and can also be detrimental for your site’s visitors. It is also possible that pretty soon; Google may start ignoring a large number of link exchanges or, go a step further, and do away with the pagerank system or then launch it in a new design to counter this practice.