Internal and external links.

Search engines ranks a site on various things.
Internal and external links are two of those things.

An internal link means that you put links on your own website that links to other content on your own website. This means that your content is well planned, contains the same subject and is easy to reach.
In other word something that both users and search engines like.

External links means that you link to content outside of your own website.
Now be careful, linking to a lot of websites who does not have anything to do with yours can bring down your rank. It's not dangerous to link to website with other content, but it's more rewarding to put up a link that might help your users by going to another quality site instead. Don't worry that they will forget about your site, they wont.
Search engines evaluates if your site is linking to other sites with the same subject as well, granting you a better rank within that subject.

When we are talking about linking to sites i's like to bring up Traffic Exchange and Backlinking as well.
Traffic exchange is when you sign up for a service to browse others sites and they browse your site.
This method is not very useful at all since it does NOT bring you targeted traffic.
An advice from me is to never spend any money on those sites, it may give you visitors, but not any that will come back for more later.

Back-linking
, it's a way of exchanging links with each other.
Say i put a link to your site and you put a link to my site.
People do this cause search engines loves sites who have many links going to them, it proves that people like them and that they are worthy a higher rank.
Be aware, when agreeing to put up a backlink with someone, that person may be a joker.
Meaning he will show you the backlink BUT, it's either not on his real website, or he takes it of the website some days later.
A very good free and secure site for backlinking is: LinkMarket.

This is a very valuable tool for checking your backlinks. iWebtool.
Put on notice that backlinks does not appear before google has updated the sites.
This may take 1-4 weeks.
If you still do not see a backlink after 1 month, there are probably no backlink to you.
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