Links are like network bridges carrying you from one web page to the other. They can either be withing the same site or take you to a new website all together. Good link building is one of the parameters for all search engine ranking algorithms to judge your web page. Just like getting references from well established resources helps further your reputation as a person similar getting a link to your website from dependable websites online helps further your webpage's rank and consequently your business.
Internal Links- These are the links which connect your webpages among each other. A link is posted on one of your pages leading to another page on your website. This helps in creating a content hierarchy and facilitates smooth navigation throughout your website. An internal link is like a self vote to your web pages, which is monitored by search engines to find out which of the webpages are important to you (The ones with the most internal links), this helps them index your site better.
External links-These links are specifically important because they help increase the credibility of a website. I believe companies should strive to accumulate as many external links so as to accentuate their online presence in order improve their search engine rank. As a software development company gaining links from associates is of prime importance.Reciprocity plays an integral role in link building. Two companies or entities get into a symbiotic partnership and share link for each other on their webpage, helping both increase their traffic.
I believe link building propels your website from an ordinary information providing dwarf site to a well established, high ranked, money generating resource.I am always on a vigil for opportunities to gather as many external links as possible. These serves as virtual votes for a website and supplement its optimization.
Search engines prudently verify the relevance and importance of external links. The weight of votes from well established, high ranking websites are more than those of your local grocery store For eg. If your webpage has an external link on an entrenched website of your domain ,like Microsoft, you have an advantage over your competitor who has links on local or spam websites.
Once you're assured of the quality and content of the linking page, it is important to focus on the relevance of your anchor text, the text to which your link is attached, to rank highly for the keywords that you are aiming for. It is also a good practice to distribute links to different parts of your website as external links rather than having all of them land on your homepage. As webpages have individual entities, this will help in optimizing your entire site as compare to just promoting your homepage. Giving you a higher chance of getting multiple good ranks on a SERP.