Links are important, they can play a very large part in the PageRank and relevance of your website, if done correctly. You can create high organic search rankings by simply understanding the links we are about to mention.
Inward Link:
Out of the four types of links that we will cover, this is a very important one. This type of link will give your website increased PageRank and site relevance, helping you gain popularity with search engines. With this link you have someone linking to your website without having to link back to them.
External Link:
As with any link, this link can help build relvance for your website. This can build a flow of visitors from relevant external websites that you link to. Make sure that the websites you are linking to are relevant to what your customers are looking for and also relevant to your website.
Reciprocal Link:
You often find this type of link when you submit your link to a link directory. With this type of link you are required to put the website you are linking to link on your website and they will link back to you.
Three-way Link:
This link can be used to deceive the search engines. Some webmasters try to use this link so they get good revelance for linking, but it can hurt you in the end because search engines will penalize your website.
Chad Meyer
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Thank you for the break down of link types, really helped me!
No problem, glad I could help!