Links Create Direct Traffic
Clicking a link from a trusted source is one of the most popular ways for people to find a new website. If a user is on a website they trust, they are likely to follow links that it recommends - or at the least, users will follow links that make the destination site appear to provide some useful information.

Links Build User Trust in You
If users see a link to you on a popular or respected site, their level of trust in what you say or what you offer is likely to be higher. MySpace generates more traffic to eBay and Amazon than MSN search does - because navigating through MySpace is about trusting what 'friends' recommend. Blogs create this same link-trust factor. Blog readers have a certain 'trust' in the author.

Links Build Search Engine Trust in Your Site
There is no doubt that link score is one of the most important factors the major search engines consider when determining where websites are ranked. The reasoning is simple: if you have many links pointing to your site from other sites, your content must contain quality, important information. A link is like a vote. Although links from important 'authority' sites carry more 'vote weight', ultimately, total 'link/vote score' is one of the heaviest algorithmic factors considered in rankings.

Links Are Free Advertising
Unless you've paid for your link - it is free advertising for you.

Links Are Trackable and Provide Market Intelligence
There are a few methods of determining who links to you, and this information can be very valuable in providing market intelligence such as;
competitor strengths/weaknesses (find out who links to them, request a link)
consumer/user opinion (what are people saying about you/competitors on blogs/forums)
potential suppliers (industry insiders who liked/linked to your site)
source of testimonials
reveals potential PR hazards (negative posts/links)

Links Reveal Strategic Partnerships
Upon reviewing your traffic logs or doing a simple link check on any of the major search engines (as mentioned above) you may encounter some sites that link to you that can reveal sources of mutual benefit, such as; - marketing partnerships (develop reciprocal ad campaign)
- service or product suppliers
- potential employees
- potential contractors
- or for support/education/help

Links Are Assets - They Add Value to Your Property
Your website is your internet property, and it has value. What gives your website saleable value (typically) is the amount of traffic the site can generate. Links are one of the most important factors in generating substantial website traffic, search engine rankings, trust, publicity, market intelligence and more. A substantial link network offers significant value to the overall package when determining a website's value.

Note: Robbed from Lots of Online Sources

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Tags: SeO