Inbound Links are the life blood of a website and the way to success rotates around these links. In a wide sense these inbound links can be categorized deveded into three groups, good, bad and useless Links.
Useful Inbound Links:
These links will bring vast benefits to your website. They can increase your search engine visibility which will indicate the popularity of your site thus increasing your link popularity, page rank, traffic and sales.
If you have unequalled and useful content in your site other websites will link to your site to provide their website visitors a good website experience. This will give you useful inbound links and valuable targeted traffic.
Listing your website in both paid and free high ranking web directories can provide good one way inbound links. Some free directories might require on mutual linking but this should not be of relation to you as they are all useful links.
Incorrect Inbound Links:
These are inbound links that are disliked by search engines especially Google and can do colossal harm to your website. By linking to these websites consciously or instinctively you can be penalized or blacklisted by the search engines.
Elude linking to sites search engines consider as Link Farms. These are sites that have hundreds of assorted links linking to each other in a page. By linking to them your credibility will be at stake and probably be penalized by the search engines.
Search Engines disapprove| consider wrong Free For All sites also known as FFA sites. Here you can place an advertisement with your link in it. Your ad will appear along with thousands of others and would probably get an exposure of an hour or so. It is wise to keep away from these sites.
You should also avoid Bad Neighborhoods because these are websites that have been penalized or prohibited by the search engines. By linking to them you too risk being penalized by the search engines.
Unfit Inbound Links:
Some inbound links are neither good nor bad. They are in fact unfit and of no benefit to you.
You should elude linking to sites that are irrelevant to the theme of your website even if they are of high page rank. Search Engines are not going to give any credit for this and you will hardly get any targeted traffic from them either.
Similarly linking to websites with very low PR even if they are of the same theme will not be of immediate benefit.
Consequently the secret of your success will depend on the inbound links you obtain from useful good websites and ignoring all the others. The evident results will begrow in link popularity, good search engine placement and great traffic.