• Source: Link exchange

A link exchange is a confederation of websites that operates similarly to a web ring. Webmasters register their websites with a central organization, that runs the exchange, and in turn receive from the exchange HTML code which they insert into their web pages. In contrast to a web ring, where the HTML code simply comprises simple circular ring navigation hyperlinks, in a link exchange the HTML code causes the display of banner advertisements, for the sites of other members of the exchange, on the member web sites, and webmasters have to create such banner advertisements for their own web sites.
The banners are downloaded from the exchange. A monitor on the exchange determines, from referral information supplied by web browsers, how many times a member website has displayed the banner advertisements of other members and credits that member with a number of displays of its banner on some other member's web site. Link exchanges usually operate on a 2:1 ratio, such that for every two times a member shows a second member's banner advertisement, that second member displays the first member's banner advertisement. This page impressions:credits ratio is the exchange rate.
One of the earliest link exchanges was LinkExchange, a company that is now owned by Microsoft.
Link exchanges have advantages and disadvantages from the point of view of those using the World Wide Web for marketing. On the one hand, they have the advantages of bringing in a highly targeted readership (for link exchanges where all members of the exchange have similar websites), of increasing the "link popularity" of a site with Web search engines, and of being relatively stable methods of hyperlinking. On the other hand, they have the disadvantages of potentially distracting visitors away to other sites before they have fully explored the site that the original link was on.
Engaging in link exchanges or paid linking activity is highly discouraged by Google and not recommended for webmasters seeking an advantage in search engine rankings. Google considers excessive link exchanges and exchanging reciprocal links "Link Schemes" and can suppress the linked site in search engine results or block it altogether.




See also


Link building
Backlink




References

• Source: LinkExchange

LinkExchange was a popular Internet advertising cooperative, similar in function to a webring, originally known as Internet Link Exchange or ILE.
It was founded in March 1996 by 23-year-old Harvard graduates Tony Hsieh (who later went on to invest in and become the CEO of Zappos) and Sanjay Madan. Ali Partovi later joined them as a third partner in August 1996. Alfred Lin dropped out of his Stanford PhD program to join as CFO. In November 1996, when the company consisted of about 10 people, it moved from Hsieh's and Madan's living room to an office in San Francisco. In May 1997, the company received US$3 million in funding from Sequoia Capital.
In June 1998, LinkExchange acquired MerchantPlanet, an early shopping cart and credit card application. That same month it also acquired Submit It! Inc., developers of Submit It!, ClickTrade, and ListBot.

In November 1998, when LinkExchange had 100 employees, it was acquired by Microsoft for US$265 million.
LinkExchange stopped taking new applications on November 15, 2006. On June 4, 2007 it stopped serving banners.




References

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