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I have this small doubt and how it could really affect the website's validity when Google sees it.
I have a professional website and most directories don't even bother what the website has .. i feel its purely the editor mentality and its not going to change, unless they realize the fact there could be a powerful source which could demote the directories itself.
So I stopped working with directories.
On the other hand:
1. These linking communities (can I put urls here?) categorize them in appropriate and provide an inbound links to the website.
2. I get to know more websites which fall in the same category and they are willing to exchange the details.
3. These guys are techinically superior and make the links alive ASAP, even notify when the links going down etc.
Is this good or bad?
Personally I don't see anything bad, but still I'm willing to know more.
Give me some insight thoughts from you guys experience.
How to identify a website if it is a link farm or not?
Look through the archives on this, lots of previous discussion -- especially in the Link Development forum [webmasterworld.com].
In general, if something exists solely for the purpose of trading links and increasing a site's PR, it's probably a link farm.