The reality is there are a variety of good methods that can be used to generate incoming links. Some methods work a little better than other options, but they can all help increase traffic in their own way.
Reciprocal linking is a popular method used by many publishers to increase incoming links. This practice requires nothing more than putting a site's link up on yours in exchange for that site's webmaster doing the same for you. This typically happens as a result of e-mail negotiations or via services that specifically facilitate link exchanges.
Facilitation services come in a variety of different flavors. Some provide fully automated plans that can have your links placed on others' sites and theirs on yours with little to no work on your part at all. Other companies just connect publishers that are interested in link exchanges. Still others arrange for swaps and then continue to track them after they've been placed to ensure they remain. Each service can be beneficial. Which one works the best depends on a publisher's own needs.
Although link swapping services can help increase incoming links, they don't always produce results. Unfortunately, many of these services fail to check to make sure swapped links are actually accessible to the viewing public. There are many examples of links that have been swapped that show up on pages not connected to sites' home pages. This issue can be sidestepped by personally checking links. Should a site not provide a link that's easy to find, contact the webmaster for action. If nothing happens, remove their reciprocal link.
When it comes to increasing traffic and rankings, reciprocal links can help. It is not, however, the only game going. There are many other options publishers can try to increase the number of incoming links their sites enjoy. Perhaps the most solid route to take is creating good, old fashion content. The more engaging, balanced, interesting or even funny the content, the better. The notion here is to actually build a site that's useful so others really want to link to it.
Content that has purpose, is engaging, informative or even funny tends to generate buzz and incoming links. Whether the site's meant to be funny, serious or has been created to fill a very distinct niche, if it reflects a certain level of quality, the links likely will come. When creating content make sure to include keywords in spots like the title, but avoid stuffing them in for the sake of doing so.
There are a number of other ways to boost incoming links. Some of the best ways include writing posts in forums with URL signatures included, retaining others to write blog posts about your content, running awards programs and contests and so on. The key with these ideas is to be creative and have a little fun.
There is more than one option to boost incoming links. Reciprocal programs are effective, but they aren't the only game in town.