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Google's algorithm is structured in such a way that it sees links from website A to website B as a vote from owner of site A about the content of site B. The more votes one site gets the better rank it can get on the search engine results. This has created a need for websites to get as many links as possible from as many websites as possible.

I am not claiming that the algorithm is so simple that links alone can help you rank better but experience has shown that they do help. Of course the quality of the site that links to you makes a difference but definetelly in the general sense the more backlinks one can have the better it is.

One can get links naturally, because people like the content of the site and link to it or it can get "unatural" links. Link exchanges, link sales or website reviews can be considered "unatural" ways of getting back links but I have not heard of any cases where google has actually penalized a site for link exchanging (even though google is officially against link sales).

Another "unatural" way to get backlinks that is also beneficial is submitting your site to link directories. The directories organize the content in categories by topic or by country (or both) and accept suggestions of inclusions in to their pages.

Depending on the age and "value" of the directory a link can be submitted for free or cost from a few hundred bucks to even $299. Now remember google is officially against buying/selling links but the directories are actually claiming that the payment is for the speed up of the submission acceptance, and the truth of the matter is Yahoo is doing it as well with its yahoo directory so it can not be that bad.

Another form of payment a directory can request is a backlink, a link exchange in other words, "I give you a link you give me a link" sort of deal.

Well what does this have to do with any business of ours ?
Webmasters want links and some of them don't have time to waste on submissions to directories and such places. Directory submission services have been all over the forums lately with prices that very competitive. $40 for submission to 1000 directories was the last that I saw.

I know it takes time to submit to 1000 directories!! Then how the hell do they do it 1000 for only $40 ?

Well, I figured some of the services do use cheap labor; data entry people - from countries that have minimum wage less than $10/day - that given half of it will bow down in front of you in appreciation.

Well mind you there are programs that can help "semi-automate" the process. Such programs are IBP and ARELIS ($299) and submiteaze ($99) that will let you insert once the link of the site and title the owner wants to submit it by and will let you go through a list of directories and with the click of a few links and minimal data entry will have the site submitted.

These programs contain enough directories to get you started will let you include manually any other directory. Remember the sites that you will probably want to include in your services are directories that don't need backlinks - since backlinks are automatically checked and you will need access to the websites server (in order to put backlinks). A good way to find the so called "free" or "non-reciprocal" directories is a search on the webmasters forums or by visiting the directory critic website.