I know that a one way link is good and adds to your google rank, but what if you just exchange links? I always thought that exchanging links has no value at all!
In the 'good old days' the search engines just looked for the number of incoming links - the more, the better. Reciprocol linking was a great idea.
Today you have to be more careful - a relevant reciprocol link can still be beneficial as it's likely to be seen as a 'resource'. The search engines look at how links benefit the vistors etc so if you link mentions keywords like 'pet sitting' and then links out to a website offering 'pet health care advice' it's likely to be benficial because the article might mention pet sitting etc so you'll have some common keywords.
Generally search engines don't penalise for reciprocol links - the most they'll do is 'ignore' it in their page rank algorithms. A few reciprocol links shoudn't harm your site at all - just make sure they're relevant.
The ultimate aim though is to achieve relevant non-reciprocol links...
Reciprocal linking is still a powerful linking method and should not be ignored. It has been ignored with the explosion of social bookmarking sites but that is where many people are still missing out.
ANY link is a good link as long as it is relevant to your business in one form or another.
KP I would agree however relevance is only one factor used by Google in the scoring process, here are a few others
Age of domain
Number of links on the page
Page Ranking of the page
Number of visitors to the page
How often the content is updated on the page
Ranking of the page/site
Is the link contextually based
People rightly speak about relevance, however it is not the only defining factor