Does link exchange work for seo?

Yes it does work. Make sure you exchange the link with a better ranking site and similar sites. A link in a better ranked website will make your site ranking better.

If you are going to be reciprocal linking, it is not going to help you much.

is only really effective when you can 3 way link and the site you place their link on isnt the one you want boosted in the SERPS.

I believe that reciprocal link exchange will not help you.

Off course i am agree with the other answers, backlinks always do wonder for your ranking and pr of your page.
But it does not matter much that backlinks must be from high pr sites but relevant category sites matter much. So exchange the links from the sites which are relevant category whether it is higher pr or not.So go ahead.

Offcourse, backlinks do improves your ranking but you should have quality backlinks from high ranking websites then only it will be beneficial for your site.

If you are doing online business, then definitely you might have used the link building strategy.

* Article submission : Article submission is most common method used in driving traffic to your site.

* Forum Posting
Forum Posting is the easy way to gain more subscribers. Firstly, you must find out the forums that are related to your business.

* Web Page Creation
With effective web page any one can drive potential customers to their site. In this method also you need to write articles about your business and load it in your webpage. The content and title should have the right keyword that is related to your business.

* Social Bookmarking
Even though this method is no so effective in link building, by following this method you can make your business familiar and visible in popular search engines.

* Blog Post
Blog posting also works similar to that of article writing. Find out some blogs, and post articles in them. So, if your article is impressive, definitely you will get more subscribers in your listing.

* Press Release Sites
Press release is used to improve your rank in search engines. Press release technique is followed when a new product is launched in the market. There are numerous press release sites, where you can submit your press release and thereby drive traffic to your site.

link exchange work only if you are exchanging links with domains that have much higher PR than your domain. I have a website with page rank 0 and was able to get a link exchange with a PR 5 blog, and then my website became a page rank 3 after the next google update.

Please check first where you exchange your link. Is its page rank good enough or not. Make sure the exchanger link should be good quality and well known as well. Then you could get a benefit for exchange your link.

yes it works...