Reciprocal links are not as bad as they are painted by many detractors. On the other hand, they are not a panacea for a site's search engine woes either.
If used correctly, link exchanges work well for both sites in the trade. The right way to determine link exchanges is whether the link provides benefit to the site's visitors.
A link to a site that is closely related to your site's overall theme will help your visitors. It also establishes your site as a useful source of information and helpful links. Visitors who know and trust you and your site as a reliable fountain of knowledge are much more likely to buy from you. Keeping your links on topic adds and retains paying customers. As an important bonus, the search engines will reward you for your actions as well.
Keep the needs of your visitors and the theme of your site in mind whenever you make a link exchange.
With that thought to guide you, reciprocal links will reward you in the search engines, and with your customers.
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