In an earlier post I outlined how to tell if an offer to exchange links was worthwhile. Lately there has been some talk that exchanging Reciprocal Links no longer works. The fact is that link exchanges still work although I believe some carry more weight than others. It has been widely noted in SEO forums (and I agree) that a link from a site whose links are organized as a “web directory” IS ignored.
By “web directory” I mean where they have multiple categories not related to the actual theme of the site – so if a real estate site has a links directory that has categories for travel sites and health insurance sites etc. – you probably get no benefit from the exchange.
Also, if a site uses popular links programs like Linksmanager you most likely get zero benefit from from the link as Google would recognize such programs and ignore links from them.
It IS getting harder and harder to find link exchanges that are of value but there still are some out there.