Interesting Webmaster World debate discussing whether link exchanges still work.

Google’s Matt Cutts is referenced as saying:

“Reciprocal links by themselves aren’t automatically bad, but we’ve communicated before that there is such a thing as excessive reciprocal linking.”
Matt Cutts

Cutts to the point (I couldn’t resist)! So as with a lot of things in life, lets not be excessive, balanced and selective moderation is the answer. Genuine and relevant link exchanges are a good viable way to trade traffic and ranking value.

I’m planning a more detailed investigation on link exchanges, lets not write them off just yet.