What is the best way to use Bookmarking sites for SEO?

First you have to think about your niche and ask - are the people reading my site likely to be users of digg, users of delicious and so on?

No one is going to sign up to digg just to bookmark your content no matter how good it is - they have to know digg and be using it to be able to 'diig' your content and benefit your site.

So if you have reason to believe that digg users or whatever bookmarking site users are likely to be in your target market - then you can start with social bookmarking.

Yes, you can sign up to services like digg and bookmark your own content - even if it doesn't provide any visitor traffic, it's another link to your website, which can't hurt.

The idea then is to provide content that you think will be wildly popular amongst the people of that network. But the thing is, even writing great content doesn't guarantee you getting lots of Diggs. You need to be involved in their community, digging other people's content, having friend lists who know you and are looking for your posts and digg them when they come up - it's alot more than just signing up and bookmarking your own stuff.

Personally I think it's a complete waste of time for the majority people getting STARTED in online business - You're far better off to produce great products and quality content and build traffic through ppc, seo, article marketing, and so on.

Hope that helps.

Andrew