Link building is the process of improving quality links to a website. It is one of the most important factors to get a site to rank high in the major search engines. The result of a good link building strategy is traffic improvement and the website to rank better on search engines. Webmasters can improve the rank of their sites by increasing the number of high-quality sites that link to their pages.
Inbound links are links from other web sites that point to your web site. The number and the quality of those inbound links has become one of the most important factors in the ranking algorithms of Google, Yahoo, MSN Search, Ask and other major search engines.
If page A links to page B then it is a recommendation from page A to page B. The more links point to your web site, the better your rankings should be.
As the number of links could be manipulated by webmasters who submitted their web sites to Free-For-All links pages and similar sites, search engines improved the way they evaluated links and nowadays it's not enough to have many incoming links.
The quality of the links is also important.
A link that contains the keyword for which you want to improve your website rankings have higher value than many links with the text Click here. A link from a web site that has a related topic is much better than links from unrelated sites or link lists.