The truth is, there are numerous ways to generate traffic. The key is to find the most effective yet most affordable strategies based on your budget.

Although it may be easy for big companies with deep pockets to throw cash into a pay per click campaign such as Google Adwords, most home based businesses can't afford huge pay-per-click campaigns. Yet without targeted traffic no business can survive for long.

One of the great advantages to running an Internet business is that the home-based business owner has many low or no cost choices when it comes to advertising.

Following are five tips that can help increase your rankings in the search engines and gain much needed exposure.

Tip #1: Traffic Exchanges

These are exceptional tools. However, they must be used correctly to get results. Although every niche may not benefit from this particular traffic method, it can be used with great success when dealing with network marketing, affiliate marketing, and other home based business opportunities.

One of the best ways to use traffic exchanges is to create your own separate landing page for the product or opportunity you're promoting. Always try to stand out from the competition unique. You will want to make sure you do this since the best marketer always wins.

By simply enticing other surfers with some free information and using an autoresponder to capture their name and email address, you can quickly build your own opt-in list of interested prospects.

Tip #2: Write a Newsletter

This may seem daunting and overwhelming for some, but it really doesn't have to be. There are hundreds of article directories floating around with articles written by experts in almost every field.

All you have to do is use them within the guidelines prescribed by the directory and author, add a few lines from yourself as an introduction and throw in an ad and you've got yourself a newsletter for your prospects and/or customers.

Tip #3: Write and Submit Your Own Articles

This is another method that can cause some people to view it as very time consuming. But, as the previous point shows, there are many hundreds of article directories out there and literally thousands of web sites, ezines and newsletter publishers looking for new and unique content every day. You are likely one yourself.

By writing your own articles and including a link back to your site you're not only branding yourself as an expert but also creating valuable back links to your site. This is a huge factor when it comes to search engine rankings which bring the best free traffic.

If you feel that this method that will be impossible for you to implement, you can hire a ghostwriter and have them write all the articles for you. You can use a free resource such as Elance.com.

Tip #4: Online Communities and Forums

By joining online forums you can also gain back links to your site by posting comments and using a signature file with your links in it. You can join four or five forums based on your interest or business. If you don't know where to find a forum, just do a search on Google and thousands will come up.

Beware, though, that most forums frown on blatant advertising. You have to attempt to add something valuable or beneficial or your posts or you may get banned.

Tip #5: Exchange Links

This can be rather difficult. You must find sites that are in the same niche as yours but not necessarily in direct competition.

You also have to find sites that already have a good ranking in the search engines for this to be effective. There are tools such as the software program SEO Elite that makes this process much easier.

Always approach any site owner with grace and dignity. Be tactful and courteous. Remember, you attract more flies with honey than vinegar.

If you use all of these strategies, you likely will an increase in targeted traffic to your home-based business website.