Put in layman's terms, there are two types of links that are important for SEO – inbound and outbound 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.
If you are not heavily backlinked, don't worry - buying links is an established practice and if you are serious about getting to the top, you may need to consider it. But before doing this, you should consider some free alternatives. For instance, some of the good places where you can get quality backlinks are Web directories like http://dmoz.org or http://dir.yahoo.com.
First, look for suitable sites to backlink to you using the Backlinks Builder below. After you identify potential backlinks, it's time to contact the Web master of the site and to start negotiating terms. 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.
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.
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