What is link building/

Like mentioned already, backlinks are when you put a link on another page pointing back to yours.

They can be used to generate traffic from pages like ezinearticles, hubpages, and squidoo. They can also be used to move your site up in the search engines.

Once you've done proper keyword research for a keyword that you feel has sufficient traffic, and the people searching for that term are likely to buy something when searching for that keyword.... Create a webpage with proper on page optimization for that keyword, and then build backlinks to your page with anchor text links to get your page ranked for that keyword.

Anchor text is what people read(in blue) when they see your link. The anchor text you use needs to be your keyword.

You get anchor text either using html or bb code. I recommend doing a google search for
html for a link
bb code for a link
That or get an example and keep it in a notepad for future reference until you remember it.

Most places use the html code, but many forums including this one use bb code.