Link Exchange 101 needed please.

[greggpow]

Don't laugh but......

How exactly does a link exchange site work? I'm assuming revenue is generated through adsense and link submission(although I don't understand why anyone would pay to be listed on a link site), but I also keep hearing about reciprical links?? and punting?? Can someone please give me a quick summary of how one makes money through link exchange?

Thanks and sorry for the dumb question.

[David]

I don't think that massive link exchange programs (http://www.phplinkdirectory.com/forum/showthread.php?t=29575) are the way to go. If you already have a site in your niche and want to exchange links with some sites in the same the niche, that can be helpful.

People pay to be listed in site every day, including major marketing firms and corporations. The more your site becomes established and recognized, the more submissions your will receive.

In addition, adding quality content to your site can help increase traffic from search engines, as well as adsense. The new blog feature moves 3.3 stronger into this area, and will be an important part in 2008.

[shadav]

are you looking to run a directory or a link exchange? they are a bit different...link exchanges tend to more or less be a "farming" page as google refers to them...

whereas a directory is a structured link listing site

a reciprocal link (which is basically what a link exchange is) is where you would place a sites link onto your site and they will place a link to you onto their site (even exchange)

punting, i have no idea what that is...

link exchanges as far as I can tell really don't make money...whereas a directory you can make money from ads such as google adsense, selling adspace on your site and then selling link submissions into the directory.
the same could be said for a link exchange as well, however they are usually not as structured as a directory...