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*Link exchanges can be a great boon for your affiliate promotion and should be considered as a tool for your web site promotion.
You should be discriminating in exchanging links. Don't link to sites that are nothing but links and don't link to sites that are poorly designed and laid out. You're basically recommending the site to your visitors so your reputation will be affected by the quality of the sites you recommend to visitors.
When looking for a good link exchange, remember:
• Look for a clean design, good navigation, and relevant content
• Don't link to a site that is in direct competition to you
• Do link to sites that are related and in the same niche market that you are
• Be wary of linking to sites that have too many links (pages and pages of links are not useful and the site will likely be penalized by the very search engines on which you're trying to rank highly)