Link building is the process of increasing the number of links pointing to your website. It is common knowledge that the ranking of the sites who have links to your site will affect your site's ranking, in turn affecting where you will place on results for searches that users make in search engines.
Link exchanging is probably the most tedious job of all. The best thing you can do is make searches using the keywords you would like your site found with. Then visit the sites that come up in the results. If the sites turning up would be complementary to yours then look for a link on their site for link exchange, or webmasters, or simply email them and ask if they would be interested is a link exchange. If the site ranks very high and it is a site your visitors would benefit from and the owners don't want to do a link exchange you can simply include their link on your site. Outgoing links also have value.
Another way is to register on www.valuablecontent.com as a writer and submit an article which of course includes your link. As people use the article your link gets included in other sites.
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