Using link exchange is a risky business for some websites. There is a specific type of website that you should exchange links with, and if you stray from that you may be cannibalizing your own market. For people who don’t know, the more links you have on other people’s websites, the higher your website appears on search engine results, so the natural strategy is to exchange links with every site possible. However, there is clearly a problem with that, since the more links you have to other people’s pages, the more visitors on your site are going to leave.
Link exchange is a double-edged sword. It is important to find companies that have products or services that are complimentary, not substitutes. For instance, Heinz ketchup and Ballpark Franks should link exchange, but Amazon.com and Barnesandnoble.com shouldn’t. Don’t cannibalize your own market by posting a competitor’s, or other people who may steal your business, link.