I've emailed many (competitor) web sites for link exchange and few of them responded.Backlinking with similar web sites can improve the SERP dramatically.How do you manage to get backlinks from similar web sites?

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Question and Answer

I think the most important thing you can do is to customize your message. Find out where exactly your link should be and why your site would be a good link for it. Everyone with a decent website gets requests for links and you need to make sure you differentiate your message.

You used the term competitor - why would a competitor link to you? Unless I am missing something. What you want to find are complementary sites.

We have been successful only by making phone calls to the business it takes on another whole level of commitment and you can sell your idea better

If you are looking for reciprocal links it should be reciprocal. If you have a pr1 and you are asking a pr5 to back link to you - you will not have much success. What you can do though is swap another site that you may have and tell them you will backlink your pr4 site with them if they back link to your pr1 site. Just make sure it is in the same industry.

I thought Google frowned upon reciprocal links?...

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My understanding is that google likes relevant links to your site and a relevant link with a high PR without a backlink is worth a lot more than the opposite.