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Now firstly, should I so the reciprocal linking the same way or there is any better way to do link exchange?
I made some tests and presenting even competitor's links on my best selling pages does not decrease my sales.
Pitty 99,999999999999999% webmasters are scared to do so as they think they would loose money.
Do go for reciprocal link exchange
Keep your links page with good PR & links to websites with similar content.
Get listed in few high PR directories, even other webmasters can find you easily.
while hunting for link partners, i've seen many sites having PR of home page 4+, but links page is at PR 0
That would discourage other webmasters to exchange link
So keep PR of your link page attractive.
What i've done is manually create all my descriptions behind the links. Somehow, I think G see's this as unique content, and hands me a PR of 5... tho PR is not an end-all solution, it is at least an indicator that I've done something right.
Recip link is almost dead they say, but you can still do it... but be very picky about who you're linking with, and where your link is found.