Link Exchanging is the process of Exchanging text links or banner links between Websites. Webmasters exchange links to improve traffic through numerous inbound links so users on other websites can click through. Exchanging Links is normally a free process (unless you choose to use a link exchange program which charges fees), making link exchanges cost effective. Another benefit of using a link exchange service is that it helps improve placement in the search engines.

Link Exchanges have been used by Webmasters for years as a means of direct marketing. Recently, this practice has gained more popularity among Webmasters due to the fact Search Engines prefer websites that have many inbound links, thus improving positions in the Search Engine Result Pages. To the Search Engines, this is an accurate means of determining the importance of websites. This practice by the Search Engines to rank websites has helped lead to the popularity of linked-based Search Engines, like Google. Thus, link Exchange software and services have become popular.